diff --git a/boxes/quantal64/lxc-template b/boxes/quantal64/lxc-template
index 0fdef44..24c25e1 100755
--- a/boxes/quantal64/lxc-template
+++ b/boxes/quantal64/lxc-template
@@ -78,8 +78,10 @@ EOF
         rm -f $rootfs/etc/init/tty{5,6}.conf
     fi
 
-    chroot $rootfs useradd --create-home -s /bin/bash vagrant
-    echo "vagrant:vagrant" | chroot $rootfs chpasswd
+    if ! (grep -q vagrant $rootfs/etc/passwd); then
+      chroot $rootfs useradd --create-home -s /bin/bash vagrant
+      echo "vagrant:vagrant" | chroot $rootfs chpasswd
+    fi
 
     return 0
 }
diff --git a/boxes/quantal64/metadata.json b/boxes/quantal64/metadata.json
index ea24c7b..5b63afa 100644
--- a/boxes/quantal64/metadata.json
+++ b/boxes/quantal64/metadata.json
@@ -1,6 +1,6 @@
 {
-  "provider":            "lxc",
-  "vagrant-lxc-version": "0.0.1",
+  "provider": "lxc",
+  "version":  "1",
 
   "template-opts": {
     "--arch":    "amd64",
diff --git a/lib/vagrant-lxc/action.rb b/lib/vagrant-lxc/action.rb
index 85d42c7..c5f97d3 100644
--- a/lib/vagrant-lxc/action.rb
+++ b/lib/vagrant-lxc/action.rb
@@ -10,11 +10,13 @@ require 'vagrant-lxc/action/create'
 require 'vagrant-lxc/action/created'
 require 'vagrant-lxc/action/destroy'
 require 'vagrant-lxc/action/disconnect'
+require 'vagrant-lxc/action/compress_rootfs'
 require 'vagrant-lxc/action/forced_halt'
 require 'vagrant-lxc/action/forward_ports'
 require 'vagrant-lxc/action/handle_box_metadata'
 require 'vagrant-lxc/action/is_running'
 require 'vagrant-lxc/action/network'
+require 'vagrant-lxc/action/setup_package_files'
 require 'vagrant-lxc/action/share_folders'
 
 module Vagrant
@@ -173,6 +175,25 @@ module Vagrant
         end
       end
 
+      # This action packages the virtual machine into a single box file.
+      def self.action_package
+        Vagrant::Action::Builder.new.tap do |b|
+          # b.use CheckDependencies
+          b.use Vagrant::Action::Builtin::Call, Created do |env1, b2|
+            if !env1[:result]
+              # TODO: Implement our own MessageNotCreated
+              b2.use VagrantPlugins::ProviderVirtualBox::Action::MessageNotCreated
+              next
+            end
+
+            b2.use action_halt
+            b2.use CompressRootFS
+            b2.use SetupPackageFiles
+            b2.use Vagrant::Action::General::Package
+          end
+        end
+      end
+
       # This is the action that will exec into an SSH shell.
       def self.action_ssh
         Vagrant::Action::Builder.new.tap do |b|
diff --git a/lib/vagrant-lxc/action/compress_rootfs.rb b/lib/vagrant-lxc/action/compress_rootfs.rb
new file mode 100644
index 0000000..63b7186
--- /dev/null
+++ b/lib/vagrant-lxc/action/compress_rootfs.rb
@@ -0,0 +1,30 @@
+require "fileutils"
+
+module Vagrant
+  module LXC
+    module Action
+      class CompressRootFS
+        def initialize(app, env)
+          @app = app
+        end
+
+        def call(env)
+          raise Vagrant::Errors::VMPowerOffToPackage if env[:machine].provider.state.id != :stopped
+
+          env[:ui].info I18n.t("vagrant.actions.lxc.compressing_rootfs")
+          @rootfs = env['package.rootfs'] = env[:machine].provider.container.compress_rootfs
+
+          @app.call env
+
+          recover # called to remove the rootfs tarball
+        end
+
+        def recover(*)
+          if @rootfs && File.exist?(@rootfs)
+            FileUtils.rm_rf(File.dirname @rootfs)
+          end
+        end
+      end
+    end
+  end
+end
diff --git a/lib/vagrant-lxc/action/handle_box_metadata.rb b/lib/vagrant-lxc/action/handle_box_metadata.rb
index a6198c3..92f1dad 100644
--- a/lib/vagrant-lxc/action/handle_box_metadata.rb
+++ b/lib/vagrant-lxc/action/handle_box_metadata.rb
@@ -29,7 +29,8 @@ module Vagrant
           system(%Q[sudo su root -c "cp #{lxc_template_src} #{dest}"])
 
           @logger.debug('Extracting rootfs')
-          system(%Q[sudo su root -c "cd #{box.directory} && tar xfz rootfs.tar.gz -C #{rootfs_cache}"])
+          # TODO: Ideally the compressed rootfs should not output errors...
+          system(%Q[sudo su root -c "cd #{box.directory} && tar xfz rootfs.tar.gz -C #{rootfs_cache} 2>/dev/null"])
 
           box.metadata.merge!(
             'template-name'     => template_name,
diff --git a/lib/vagrant-lxc/action/setup_package_files.rb b/lib/vagrant-lxc/action/setup_package_files.rb
new file mode 100644
index 0000000..a1a8a73
--- /dev/null
+++ b/lib/vagrant-lxc/action/setup_package_files.rb
@@ -0,0 +1,52 @@
+require 'fileutils'
+
+module Vagrant
+  module LXC
+    module Action
+      class SetupPackageFiles
+        def initialize(app, env)
+          @app = app
+
+          env["package.include"]     ||= []
+          env["package.vagrantfile"] ||= nil
+        end
+
+        def call(env)
+          @env = env
+
+          create_package_temp_dir
+          move_rootfs_to_pkg_dir
+          copy_box_files_to_pkg_dir
+
+          @app.call env
+
+          recover # called to cleanup temp directory
+        end
+
+        def recover(*)
+          if @temp_dir && File.exist?(@temp_dir)
+            FileUtils.rm_rf(@temp_dir)
+          end
+        end
+
+        private
+
+        def create_package_temp_dir
+          @env[:ui].info I18n.t("vagrant.actions.vm.export.create_dir")
+          @temp_dir = @env["package.directory"] = @env[:tmp_path].join("container-export-#{Time.now.to_i.to_s}")
+          FileUtils.mkpath(@temp_dir)
+        end
+
+        def move_rootfs_to_pkg_dir
+          FileUtils.mv @env['package.rootfs'].to_s, @env['package.directory'].to_s
+        end
+
+        def copy_box_files_to_pkg_dir
+          box_dir = @env[:machine].box.directory
+          FileUtils.cp box_dir.join('lxc-template').to_s, @env['package.directory'].to_s
+          FileUtils.cp box_dir.join('metadata.json').to_s, @env['package.directory'].to_s
+        end
+      end
+    end
+  end
+end
diff --git a/lib/vagrant-lxc/container.rb b/lib/vagrant-lxc/container.rb
index 31df834..4d9d347 100644
--- a/lib/vagrant-lxc/container.rb
+++ b/lib/vagrant-lxc/container.rb
@@ -93,6 +93,26 @@ module Vagrant
         @cli.destroy
       end
 
+      # TODO: This needs to be reviewed and specs needs to be written
+      def compress_rootfs
+        # TODO: Our template should not depend on container's arch
+        arch           = base_path.join('config').read.match(/^lxc\.arch\s+=\s+(.+)$/)[1]
+        rootfs_dirname = File.dirname rootfs_path
+        basename       = rootfs_path.to_s.gsub(/^#{Regexp.escape rootfs_dirname}\//, '')
+        # TODO: Pass in tmpdir so we can clean up from outside
+        target_path    = "#{Dir.mktmpdir}/rootfs.tar.gz"
+
+        Dir.chdir base_path do
+          @logger.info "Compressing '#{rootfs_path}' rootfs to #{target_path}"
+          system "sudo rm -f rootfs.tar.gz && sudo bsdtar -s /#{basename}/rootfs-#{arch}/ --numeric-owner -czf #{target_path} #{basename}/* 2>/dev/null"
+
+          @logger.info "Changing rootfs tarbal owner"
+          system "sudo chown #{ENV['USER']}:#{ENV['USER']} #{target_path}"
+        end
+
+        target_path
+      end
+
       def state
         if @name
           @cli.state
diff --git a/locales/en.yml b/locales/en.yml
index 4224875..132d2c0 100644
--- a/locales/en.yml
+++ b/locales/en.yml
@@ -2,6 +2,8 @@ en:
   vagrant:
     actions:
       lxc:
+        compressing_rootfs: Compressing container's rootfs...
+
         share_folders:
           preparing: Setting up mount entries for shared folders...
 
diff --git a/spec/unit/action/compress_rootfs_spec.rb b/spec/unit/action/compress_rootfs_spec.rb
new file mode 100644
index 0000000..17d854e
--- /dev/null
+++ b/spec/unit/action/compress_rootfs_spec.rb
@@ -0,0 +1,27 @@
+require 'unit_helper'
+
+require 'vagrant-lxc/action/compress_rootfs'
+
+describe Vagrant::LXC::Action::CompressRootFS do
+  let(:app)                    { mock(:app, call: true) }
+  let(:env)                    { {machine: machine, ui: stub(info: true)} }
+  let(:machine)                { fire_double('Vagrant::Machine', provider: provider) }
+  let(:provider)               { fire_double('Vagrant::LXC::Provider', container: container) }
+  let(:container)              { fire_double('Vagrant::LXC::Container', compress_rootfs: compressed_rootfs_path) }
+  let(:compressed_rootfs_path) { '/path/to/rootfs.tar.gz' }
+
+  subject { described_class.new(app, env) }
+
+  before do
+    provider.stub_chain(:state, :id).and_return(:stopped)
+    subject.call(env)
+  end
+
+  it 'asks the container to compress its rootfs' do
+    container.should have_received(:compress_rootfs)
+  end
+
+  it 'sets export.temp_dir on action env' do
+    env['package.rootfs'].should == compressed_rootfs_path
+  end
+end
diff --git a/spec/unit/action/handle_box_metadata_spec.rb b/spec/unit/action/handle_box_metadata_spec.rb
index 7a76015..18c81aa 100644
--- a/spec/unit/action/handle_box_metadata_spec.rb
+++ b/spec/unit/action/handle_box_metadata_spec.rb
@@ -39,6 +39,6 @@ describe Vagrant::LXC::Action::HandleBoxMetadata do
 
   it 'extracts rootfs into a tmp folder' do
     subject.should have_received(:system).
-                   with(%Q[sudo su root -c "cd #{box_directory} && tar xfz rootfs.tar.gz -C #{tmpdir}"])
+                   with(%Q[sudo su root -c "cd #{box_directory} && tar xfz rootfs.tar.gz -C #{tmpdir} 2>/dev/null"])
   end
 end
diff --git a/spec/unit/action/setup_package_files_spec.rb b/spec/unit/action/setup_package_files_spec.rb
new file mode 100644
index 0000000..4e50189
--- /dev/null
+++ b/spec/unit/action/setup_package_files_spec.rb
@@ -0,0 +1,41 @@
+require 'unit_helper'
+
+require 'vagrant-lxc/action/setup_package_files'
+
+describe Vagrant::LXC::Action::SetupPackageFiles do
+  let(:app)         { mock(:app, call: true) }
+  let(:env)         { {machine: machine, tmp_path: tmp_path, ui: stub(info: true), 'package.rootfs' => rootfs_path} }
+  let(:machine)     { fire_double('Vagrant::Machine', box: box) }
+  let!(:tmp_path)   { Pathname.new(Dir.mktmpdir) }
+  let(:box)         { fire_double('Vagrant::Box', directory: tmp_path.join('box')) }
+  let(:rootfs_path) { tmp_path.join('rootfs-amd64.tar.gz') }
+
+  subject { described_class.new(app, env) }
+
+  before do
+    box.directory.mkdir
+    [box.directory.join('lxc-template'), box.directory.join('metadata.json'), rootfs_path].each do |file|
+      file.open('w') { |f| f.puts file.to_s }
+    end
+
+    subject.stub(recover: true) # Prevents files from being removed on specs
+    subject.call(env)
+  end
+
+  after do
+    FileUtils.rm_rf(tmp_path.to_s)
+  end
+
+  it 'copies box lxc-template to package directory' do
+    env['package.directory'].join('lxc-template').should be_file
+  end
+
+  it 'copies metadata.json to package directory' do
+    env['package.directory'].join('metadata.json').should be_file
+  end
+
+  it 'moves the compressed rootfs to package directory' do
+    env['package.directory'].join(rootfs_path.basename).should be_file
+    env['package.rootfs'].should_not be_file
+  end
+end