Index: gnu/usr.bin/grep/grep.c
===================================================================
--- gnu/usr.bin/grep/grep.c
+++ gnu/usr.bin/grep/grep.c
@@ -79,7 +79,7 @@
 static int filename_mask;
 
 /* If nonzero, use grep_color marker.  */
-static int color_option;
+static int color_option = 2;
 
 /* If nonzero, show only the part of a line matching the expression. */
 static int only_matching;
@@ -1676,13 +1676,6 @@
             show_help = 1;
         } else
           color_option = 2;
-        if(color_option == 2) {
-          if(isatty(STDOUT_FILENO) && getenv("TERM") &&
-	     strcmp(getenv("TERM"), "dumb"))
-                  color_option = 1;
-          else
-            color_option = 0;
-        }
 	break;
 
       case EXCLUDE_OPTION:
@@ -1725,6 +1718,13 @@
 
       }
 
+  if(color_option == 2) {
+    if(isatty(STDOUT_FILENO) && getenv("TERM") &&
+	     strcmp(getenv("TERM"), "dumb"))
+        color_option = 1;
+    else
+        color_option = 0;
+  }
   /* POSIX.2 says that -q overrides -l, which in turn overrides the
      other output options.  */
   if (exit_on_match)