diff --git a/paunch/builder/compose1.py b/paunch/builder/compose1.py
index c3dceaf..450ef4d 100644
--- a/paunch/builder/compose1.py
+++ b/paunch/builder/compose1.py
@@ -281,6 +281,10 @@ class ComposeV1Builder(object):
             cmd.append('--privileged=%s' % str(cconfig['privileged']).lower())
         if 'user' in cconfig:
             cmd.append('--user=%s' % cconfig['user'])
+        # TODO(sbaker): support the dict layout for this property
+        for v in cconfig.get('environment', []):
+            if v:
+                cmd.append('--env=%s' % v)
         command = self.command_argument(cconfig.get('command'))
         # for exec, the first argument is the container name,
         # make sure the correct one is used
diff --git a/paunch/tests/test_builder_compose1.py b/paunch/tests/test_builder_compose1.py
index 9858173..f57765c 100644
--- a/paunch/tests/test_builder_compose1.py
+++ b/paunch/tests/test_builder_compose1.py
@@ -563,6 +563,7 @@ three-12345678 three''', '', 0),
             'one': {
                 'command': 'ls -l /foo',
                 'privileged': True,
+                'environment': ['FOO=BAR'],
                 'user': 'bar'
             }
         }
@@ -574,6 +575,7 @@ three-12345678 three''', '', 0),
         self.assertEqual(
             ['docker', 'exec',
              '--privileged=true', '--user=bar',
+             '--env=FOO=BAR',
              'one-12345678', '-l', '/foo'],
             cmd
         )