diff --git a/src/jqLite.js b/src/jqLite.js
index d012707650f9..1ba270b671d3 100644
--- a/src/jqLite.js
+++ b/src/jqLite.js
@@ -165,7 +165,7 @@ function JQLite(element) {
     var div = document.createElement('div');
     // Read about the NoScope elements here:
     // http://msdn.microsoft.com/en-us/library/ms533897(VS.85).aspx
-    div.innerHTML = '<div>&nbsp;</div>' + element; // IE insanity to make NoScope elements work!
+    div.innerHTML = '<div>&#160;</div>' + element; // IE insanity to make NoScope elements work!
     div.removeChild(div.firstChild); // remove the superfluous div
     JQLiteAddNodes(this, div.childNodes);
     this.remove(); // detach the elements from the temporary DOM div.
diff --git a/src/ng/compile.js b/src/ng/compile.js
index 89f46af663aa..a569ca8e142c 100644
--- a/src/ng/compile.js
+++ b/src/ng/compile.js
@@ -319,7 +319,7 @@ function $CompileProvider($provide) {
       // not be able to attach scope data to them, so we will wrap them in <span>
       forEach($compileNode, function(node, index){
         if (node.nodeType == 3 /* text node */) {
-          $compileNode[index] = jqLite(node).wrap('<span>').parent()[0];
+          $compileNode[index] = jqLite(node).wrap('<span></span>').parent()[0];
         }
       });
       var compositeLinkFn = compileNodes($compileNode, transcludeFn, $compileNode, maxPriority);