diff --git a/examples/simpleperf.py b/examples/simpleperf.py
index a5a08a7..84f39d3 100755
--- a/examples/simpleperf.py
+++ b/examples/simpleperf.py
@@ -16,22 +16,30 @@ from mininet.link import TCLink
 from mininet.util import dumpNodeConnections
 from mininet.log import setLogLevel
 
+from sys import argv
+
 class SingleSwitchTopo(Topo):
     "Single switch connected to n hosts."
-    def __init__(self, n=2, **opts):
+    def __init__(self, n=2, lossy=True, **opts):
         Topo.__init__(self, **opts)
         switch = self.addSwitch('s1')
         for h in range(n):
             # Each host gets 50%/n of system CPU
             host = self.addHost('h%s' % (h + 1),
                                 cpu=.5 / n)
-            # 10 Mbps, 5ms delay, 10% loss
-            self.addLink(host, switch,
-                         bw=10, delay='5ms', loss=10, use_htb=True)
+            if lossy:
+                # 10 Mbps, 5ms delay, 10% packet loss
+                self.addLink(host, switch,
+                             bw=10, delay='5ms', loss=10, use_htb=True)
+            else:
+                # 10 Mbps, 5ms delay, no packet loss
+                self.addLink(host, switch,
+                             bw=10, delay='5ms', loss=0, use_htb=True)
 
-def perfTest():
+
+def perfTest( lossy=True ):
     "Create network and run simple performance test"
-    topo = SingleSwitchTopo( n=4 )
+    topo = SingleSwitchTopo( n=4, lossy=lossy )
     net = Mininet( topo=topo,
                    host=CPULimitedHost, link=TCLink,
                    autoStaticArp=True )
@@ -44,5 +52,6 @@ def perfTest():
     net.stop()
 
 if __name__ == '__main__':
-    setLogLevel('info')
-    perfTest()
+    setLogLevel( 'info' )
+    # Prevent test_simpleperf from failing due to packet loss
+    perfTest( lossy=( 'testmode' not in argv ) )
diff --git a/examples/test/test_simpleperf.py b/examples/test/test_simpleperf.py
index 43fe711..f8e94d5 100755
--- a/examples/test/test_simpleperf.py
+++ b/examples/test/test_simpleperf.py
@@ -16,15 +16,15 @@ class testSimplePerf( unittest.TestCase ):
     @unittest.skipIf( '-quick' in sys.argv, 'long test' )
     def testE2E( self ):
         "Run the example and verify iperf results"
+        # 10 Mb/s, plus or minus 20% tolerance
         BW = 10
-        TOLERANCE = .8
-        expectedBw = BW * TOLERANCE
-        p = pexpect.spawn( 'python -m mininet.examples.simpleperf' )
+	TOLERANCE = .2 
+        p = pexpect.spawn( 'python -m mininet.examples.simpleperf testmode' )
         # check iperf results
         p.expect( "Results: \['10M', '([\d\.]+) .bits/sec", timeout=480 )
         measuredBw = float( p.match.group( 1 ) )
-        lowerBound = expectedBw * TOLERANCE
-        upperBound = expectedBw + expectedBw * ( 1 - TOLERANCE )
+        lowerBound = BW * ( 1 - TOLERANCE )
+        upperBound = BW + ( 1 + TOLERANCE )
         self.assertGreaterEqual( measuredBw, lowerBound )
         self.assertLessEqual( measuredBw, upperBound )
         p.wait()