diff --git a/dependencymanager/test/src/test/java/org/apache/felix/dm/test/annotation/PropagateAnnotationTest.java b/dependencymanager/test/src/test/java/org/apache/felix/dm/test/annotation/PropagateAnnotationTest.java
deleted file mode 100644
index 55e33e2..0000000
--- a/dependencymanager/test/src/test/java/org/apache/felix/dm/test/annotation/PropagateAnnotationTest.java
+++ /dev/null
@@ -1,73 +0,0 @@
-/*
- * Licensed to the Apache Software Foundation (ASF) under one
- * or more contributor license agreements.  See the NOTICE file
- * distributed with this work for additional information
- * regarding copyright ownership.  The ASF licenses this file
- * to you 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.
- */
-package org.apache.felix.dm.test.annotation;
-
-import static org.ops4j.pax.exam.CoreOptions.mavenBundle;
-import static org.ops4j.pax.exam.CoreOptions.options;
-import static org.ops4j.pax.exam.CoreOptions.provision;
-import static org.ops4j.pax.exam.CoreOptions.systemProperty;
-
-import org.apache.felix.dm.DependencyManager;
-import org.apache.felix.dm.test.Base;
-import org.apache.felix.dm.test.BundleGenerator;
-import org.junit.Test;
-import org.junit.runner.RunWith;
-import org.ops4j.pax.exam.Option;
-import org.ops4j.pax.exam.junit.Configuration;
-import org.ops4j.pax.exam.junit.JUnit4TestRunner;
-import org.osgi.framework.BundleContext;
-import org.osgi.framework.Constants;
-
-/**
- * Use case: Verify that dependency "propagate" option is properly propagating properties to provided service.
- */
-@RunWith(JUnit4TestRunner.class)
-public class PropagateAnnotationTest extends AnnotationBase
-{
-    @Configuration
-    public static Option[] configuration()
-    {
-        return options(
-            systemProperty(DMLOG_PROPERTY).value( "true" ),
-            provision(
-                mavenBundle().groupId("org.osgi").artifactId("org.osgi.compendium").version(Base.OSGI_SPEC_VERSION),
-                mavenBundle().groupId("org.apache.felix").artifactId("org.apache.felix.dependencymanager").versionAsInProject(),
-                mavenBundle().groupId("org.apache.felix").artifactId("org.apache.felix.configadmin").version("1.2.4"),
-                mavenBundle().groupId("org.apache.felix").artifactId("org.apache.felix.dependencymanager.runtime").versionAsInProject()),
-            provision(
-                new BundleGenerator()
-                    .set(Constants.BUNDLE_SYMBOLICNAME, "PropagateAnnotationTest")
-                    .set("Export-Package", "org.apache.felix.dm.test.bundle.annotation.sequencer")
-                    .set("Private-Package", "org.apache.felix.dm.test.bundle.annotation.propagate")
-                    .set("Import-Package", "*")
-                    .set("-plugin", "org.apache.felix.dm.annotation.plugin.bnd.AnnotationPlugin")
-                    .build()));            
-    }
-
-    /**
-     * A Service that just registers/unregisters its service, using the @ServiceLifecycle annotation.
-     */
-    @Test
-    public void testServiceDependencyPropagate(BundleContext context)
-    {
-        DependencyManager m = new DependencyManager(context);
-        m.add(makeSequencer(m, "ServiceDependencyPropagateTest")); 
-        m_ensure.waitForStep(3, 10000);
-    }    
-}
diff --git a/dependencymanager/test/src/main/java/org/apache/felix/dm/test/bundle/annotation/propagate/ServiceDependencyPropagateTest.java b/dependencymanager/test2/src/main/java/org/apache/felix/dependencymanager/test2/components/PropagateAnnotation.java
similarity index 72%
rename from dependencymanager/test/src/main/java/org/apache/felix/dm/test/bundle/annotation/propagate/ServiceDependencyPropagateTest.java
rename to dependencymanager/test2/src/main/java/org/apache/felix/dependencymanager/test2/components/PropagateAnnotation.java
index 1c53353..b95cf71 100644
--- a/dependencymanager/test/src/main/java/org/apache/felix/dm/test/bundle/annotation/propagate/ServiceDependencyPropagateTest.java
+++ b/dependencymanager/test2/src/main/java/org/apache/felix/dependencymanager/test2/components/PropagateAnnotation.java
@@ -16,7 +16,7 @@
  * specific language governing permissions and limitations
  * under the License.
  */
-package org.apache.felix.dm.test.bundle.annotation.propagate;
+package org.apache.felix.dependencymanager.test2.components;
 
 import java.util.Map;
 
@@ -24,25 +24,23 @@
 import org.apache.felix.dm.annotation.api.Property;
 import org.apache.felix.dm.annotation.api.ServiceDependency;
 import org.apache.felix.dm.annotation.api.Start;
-import org.apache.felix.dm.test.bundle.annotation.sequencer.Sequencer;
 
 /**
  * Verifies ServiceDependencyservice properties propagation.
  */
-public class ServiceDependencyPropagateTest
-{
+public class PropagateAnnotation {
     @Component
     public static class Consumer {
-        private Map m_producerProps;
+        private volatile Map m_producerProps;
 
         @ServiceDependency
         void bind(Map props, Producer producer) {
             m_producerProps = props;
         }
-        
-        @ServiceDependency(filter="(name=ServiceDependencyPropagateTest)")
-        Sequencer m_sequencer;
-        
+
+        @ServiceDependency(filter = "(name=test.PropagateAnnotationTest)")
+        volatile Ensure m_sequencer;
+
         @Start
         void start() {
             m_sequencer.step(1);
@@ -54,15 +52,14 @@
             }
         }
     }
-    
-    @Component(provides={Producer.class}, properties={@Property(name="foo", value="bar")})
-    public static class Producer {
-        @ServiceDependency(propagate=true)
-        Producer2 m_producer;
-    }
-    
 
-    @Component(provides={Producer2.class}, properties={@Property(name="foo2", value="bar2")})
+    @Component(provides = {Producer.class}, properties = {@Property(name = "foo", value = "bar")})
+    public static class Producer {
+        @ServiceDependency(propagate = true)
+        volatile Producer2 m_producer;
+    }
+
+    @Component(provides = {Producer2.class}, properties = {@Property(name = "foo2", value = "bar2")})
     public static class Producer2 {
     }
 }
diff --git a/dependencymanager/test2/src/test/java/org/apache/felix/dependencymanager/test2/integration/annotations/PropagateAnnotationTest.java b/dependencymanager/test2/src/test/java/org/apache/felix/dependencymanager/test2/integration/annotations/PropagateAnnotationTest.java
new file mode 100644
index 0000000..caea4db
--- /dev/null
+++ b/dependencymanager/test2/src/test/java/org/apache/felix/dependencymanager/test2/integration/annotations/PropagateAnnotationTest.java
@@ -0,0 +1,40 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you 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.
+ */
+package org.apache.felix.dependencymanager.test2.integration.annotations;
+
+import org.apache.felix.dependencymanager.test2.components.Ensure;
+import org.apache.felix.dependencymanager.test2.integration.common.TestBase;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.ops4j.pax.exam.junit.PaxExam;
+import org.osgi.framework.ServiceRegistration;
+
+/**
+ * Use case: Verify that dependency "propagate" option is properly propagating properties to provided service.
+ */
+@RunWith(PaxExam.class)
+public class PropagateAnnotationTest extends TestBase {
+    @Test
+    public void testServiceDependencyPropagate() {
+        Ensure e = new Ensure();
+        ServiceRegistration sr = register(e, "test.PropagateAnnotationTest");
+        e.waitForStep(3, 10000);
+        sr.unregister();
+    }
+}