diff --git a/examples/impulse_rnn.py b/examples/impulse_rnn.py
new file mode 100755
index 00000000..87ce8c4d
--- /dev/null
+++ b/examples/impulse_rnn.py
@@ -0,0 +1,178 @@
+#!/usr/bin/env python
+# ----------------------------------------------------------------------------
+# Copyright 2017, Alexey Reshetnyak.
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+# ----------------------------------------------------------------------------
+"""
+    A simple example that demonstrates recurrent neural network training.
+    The network has two inputs and one output. The inputs of the network
+synchronously receive impulses at random times. The amplitude of the impulse at
+the first input is equal to one. The amplitude of the impulses on the second
+input is a random variable that is uniformly distributed from zero to one. The
+desired network output is a impulse which starts at the same time as the input
+impulses. The desired impulse has an amplitude equal to one, but its duration
+is proportional to the amplitude of second input.
+
+Usage:
+
+    python examples/impulse_rnn.py
+
+"""
+
+from neon.backends import gen_backend
+from neon.initializers import Uniform
+from neon.layers import GeneralizedCost, Affine, Recurrent
+from neon.models import Model
+from neon.optimizers import GradientDescentMomentum
+from neon.transforms import Logistic
+from neon.callbacks.callbacks import Callbacks
+from neon.transforms.cost import MeanSquared
+from neon import NervanaObject
+import numpy as np
+do_plots = True
+try:
+    import matplotlib.pyplot as plt
+except ImportError:
+    neon_logger.display('matplotlib needs to be installed manually to generate plots needed '
+                        'for this example.  Skipping plot generation')
+    do_plots = False
+
+np.random.seed()
+
+class ImpulseData(object):
+    """
+    x - network inputs
+    y - desired output
+    """
+    def __init__(self, data_len):
+        self.x = np.zeros((data_len, 2), np.float32)
+        self.y = np.zeros((data_len, 1), np.float32)
+        period = 11
+        i = 0 
+        while i < data_len:
+            a = np.random.randint(2)
+            self.x[i, 0] = a
+            if a == 1:
+                b = np.random.rand()
+                self.x[i, 1] = b
+                pulse_len = int(b * 10)
+                if i + pulse_len < data_len:
+                    self.y[i:i + pulse_len, 0] = 1
+                else:
+                    self.y[i:-1, 0] = 1
+                i += period
+            i += 1
+
+class ImpulseDataIterator(NervanaObject):
+    def __init__(self, X, y, time_steps):
+        self.y = y
+        self.seq_length = time_steps
+        self.batch_index = 0
+        self.nfeatures = X.shape[1]
+        self.nsamples = X.shape[0]
+        self.ndata = X.shape[0]
+        self.shape = (self.nfeatures, time_steps)
+
+        extra_examples = self.nsamples % (self.be.bsz * time_steps)
+        if extra_examples:
+            X = X[:-extra_examples]
+            y = y[:-extra_examples]
+        else:
+            X = X
+            y = y
+
+        self.nbatches = self.nsamples // (self.be.bsz * time_steps)
+        self.X_dev = self.be.iobuf((self.nfeatures, time_steps))
+        self.y_dev = self.be.iobuf((y.shape[1], time_steps))
+
+        self.X = X.reshape(self.be.bsz, self.nbatches,
+                           time_steps, self.nfeatures)
+        self.y = y.reshape(self.be.bsz, self.nbatches,
+                           time_steps, y.shape[1])
+
+    def reset(self):
+        self.batch_index = 0
+
+    def __iter__(self):
+        self.batch_index = 0
+        while self.batch_index < self.nbatches:
+            X_batch = self.X[:, self.batch_index].T.reshape(
+                self.X_dev.shape).copy()
+            y_batch = self.y[:, self.batch_index].T.reshape(
+                self.y_dev.shape).copy()
+
+            # make the data for this batch as backend tensor
+            self.X_dev.set(X_batch)
+            self.y_dev.set(y_batch)
+
+            self.batch_index += 1
+
+            yield self.X_dev, self.y_dev
+
+train_data = ImpulseData(40000)
+test_data = ImpulseData(200)
+
+batch_size = 1
+epochs = 2
+hidden_size = 16
+backprop_depth = 10
+
+# setup backend
+be = gen_backend(backend='cpu', batch_size = batch_size)
+
+train_set = ImpulseDataIterator(train_data.x, train_data.y, backprop_depth)
+valid_set = ImpulseDataIterator(test_data.x, test_data.y, backprop_depth)
+
+# weight initialization
+uni = Uniform(low=-0.5, high=0.5)
+
+layers = [
+    Recurrent(hidden_size, uni, activation=Logistic(), reset_cells=False),
+    Affine(1, uni, bias=uni, activation=Logistic())
+]
+model = Model(layers=layers)
+
+cost = GeneralizedCost(costfunc=MeanSquared())
+optimizer = GradientDescentMomentum(0.08, momentum_coef=0.9)
+
+# configure callbacks
+callbacks = Callbacks(model, eval_set=valid_set, serialize=1)
+
+# train model
+model.fit(train_set, optimizer=optimizer,
+          num_epochs=epochs, cost=cost, callbacks=callbacks)
+valid_output = model.get_outputs(valid_set).reshape(-1, 1)
+
+if do_plots:
+    fig = plt.figure()
+
+    ax1 = fig.add_subplot(411)
+    ax1.title.set_text('First input')
+    ax1.plot(test_data.x[:, 0])
+
+    ax2 = fig.add_subplot(412)
+    ax2.plot(test_data.x[:, 1])
+    ax2.title.set_text('Second input')
+
+    ax3 = fig.add_subplot(413)
+    ax3.title.set_text('Desired output')
+    ax3.plot(test_data.y[:, 0])
+
+    ax4 = fig.add_subplot(414)
+    ax4.title.set_text('Actual output')
+    ax4.plot(valid_output)
+
+    plt.tight_layout(pad=0.4, w_pad=0.5, h_pad=1.0)
+
+    plt.show()
+