diff --git a/plugins/IntentionPowerPak/src/com/siyeh/ipp/concatenation/Jdk5StringConcatenationPredicate.java b/plugins/IntentionPowerPak/src/com/siyeh/ipp/concatenation/Jdk5StringConcatenationPredicate.java
index eedaf39a648c..e289206334d3 100644
--- a/plugins/IntentionPowerPak/src/com/siyeh/ipp/concatenation/Jdk5StringConcatenationPredicate.java
+++ b/plugins/IntentionPowerPak/src/com/siyeh/ipp/concatenation/Jdk5StringConcatenationPredicate.java
@@ -15,7 +15,10 @@
  */
 package com.siyeh.ipp.concatenation;
 
+import com.intellij.psi.PsiArrayInitializerMemberValue;
+import com.intellij.psi.PsiBinaryExpression;
 import com.intellij.psi.PsiElement;
+import com.intellij.psi.PsiNameValuePair;
 import com.intellij.psi.util.PsiUtil;
 import com.siyeh.ipp.base.PsiElementPredicate;
 import com.siyeh.ipp.psiutils.ConcatenationUtils;
@@ -27,9 +30,24 @@ class Jdk5StringConcatenationPredicate implements PsiElementPredicate {
         if (!PsiUtil.isLanguageLevel5OrHigher(element)) {
             return false;
         }
-        if(!ConcatenationUtils.isConcatenation(element)) {
+        if (!ConcatenationUtils.isConcatenation(element)) {
+            return false;
+        }
+        if (isInsideAnnotation(element)) {
             return false;
         }
         return !ErrorUtil.containsError(element);
     }
+
+    private static boolean isInsideAnnotation(PsiElement element) {
+        for (int i = 0; i < 20 && element instanceof PsiBinaryExpression; i++) {
+            // optimization: don't check deep string concatenations more than 20 levels up.
+            element = element.getParent();
+            if (element instanceof PsiNameValuePair ||
+                element instanceof PsiArrayInitializerMemberValue) {
+                return true;
+            }
+        }
+        return false;
+    }
 }