diff --git a/services/mgmt/device/impl/app_service.go b/services/mgmt/device/impl/app_service.go
index f88abfa..5d5b6c7 100644
--- a/services/mgmt/device/impl/app_service.go
+++ b/services/mgmt/device/impl/app_service.go
@@ -630,11 +630,8 @@
 	// them between apps or instances.
 	for pkg, _ := range envelope.Packages {
 		pkgFile := filepath.Join(versionDir, "pkg", pkg)
-		dstDir := filepath.Join(packagesDir, pkg)
-		if err := os.MkdirAll(dstDir, os.FileMode(0700)); err != nil {
-			return err
-		}
-		if err := libpackages.Install(pkgFile, dstDir); err != nil {
+		dst := filepath.Join(packagesDir, pkg)
+		if err := libpackages.Install(pkgFile, dst); err != nil {
 			return err
 		}
 	}
diff --git a/services/mgmt/device/impl/impl_test.go b/services/mgmt/device/impl/impl_test.go
index abd5f84..0d171c5 100644
--- a/services/mgmt/device/impl/impl_test.go
+++ b/services/mgmt/device/impl/impl_test.go
@@ -1235,6 +1235,12 @@
 	if _, err := libbinary.UploadFromDir(ctx, naming.Join(binaryVON, "testpkg"), tmpdir); err != nil {
 		t.Fatalf("libbinary.UploadFromDir failed: %v", err)
 	}
+	if err := ioutil.WriteFile(filepath.Join(tmpdir, "goodbye.txt"), []byte("Goodbye World!"), 0600); err != nil {
+		t.Fatalf("ioutil.WriteFile failed: %v", err)
+	}
+	if _, err := libbinary.UploadFromFile(ctx, naming.Join(binaryVON, "testfile"), filepath.Join(tmpdir, "goodbye.txt")); err != nil {
+		t.Fatalf("libbinary.UploadFromFile failed: %v", err)
+	}
 
 	root, cleanup := mgmttest.SetupRootDir(t, "devicemanager")
 	defer cleanup()
@@ -1255,7 +1261,8 @@
 	// Create the envelope for the first version of the app.
 	*envelope = envelopeFromShell(sh, nil, appCmd, "google naps", "appV1")
 	(*envelope).Packages = map[string]string{
-		"test": "realbin/testpkg",
+		"test":  "realbin/testpkg",
+		"test2": "realbin/testfile",
 	}
 
 	// Install the app.
@@ -1271,15 +1278,28 @@
 		t.Fatalf("failed to get ping")
 	}
 
-	// Ask the app to cat a file from the package.
-	file := filepath.Join("packages", "test", "hello.txt")
-	name := "appV1"
-	content, err := cat(ctx, name, file)
-	if err != nil {
-		t.Errorf("cat(%q, %q) failed: %v", name, file, err)
-	}
-	if expected := "Hello World!"; content != expected {
-		t.Errorf("unexpected content: expected %q, got %q", expected, content)
+	for _, c := range []struct {
+		path, content string
+	}{
+		{
+			filepath.Join("test", "hello.txt"),
+			"Hello World!",
+		},
+		{
+			"test2",
+			"Goodbye World!",
+		},
+	} {
+		// Ask the app to cat the file.
+		file := filepath.Join("packages", c.path)
+		name := "appV1"
+		content, err := cat(ctx, name, file)
+		if err != nil {
+			t.Errorf("cat(%q, %q) failed: %v", name, file, err)
+		}
+		if expected := c.content; content != expected {
+			t.Errorf("unexpected content: expected %q, got %q", expected, content)
+		}
 	}
 }
 
diff --git a/services/mgmt/lib/packages/packages.go b/services/mgmt/lib/packages/packages.go
index 330b61d..a1abc45 100644
--- a/services/mgmt/lib/packages/packages.go
+++ b/services/mgmt/lib/packages/packages.go
@@ -41,19 +41,39 @@
 	return repository.MediaInfo{Type: defaultType}
 }
 
-// Install installs a package in the given directory. If the package is a TAR or
-// ZIP archive, its content is extracted in the destination directory.
-// Otherwise, the package file itself is copied to the destination directory.
-func Install(pkgFile, dir string) error {
+func copyFile(src, dst string) error {
+	s, err := os.Open(src)
+	if err != nil {
+		return err
+	}
+	defer s.Close()
+	d, err := os.Create(dst)
+	if err != nil {
+		return err
+	}
+	defer d.Close()
+	if _, err = io.Copy(d, s); err != nil {
+		return err
+	}
+	return d.Sync()
+}
+
+// Install installs a package in the given destination. If the package is a TAR
+// or ZIP archive, the destination becomes a directory where the archive content
+// is extracted.  Otherwise, the package file itself is copied to the
+// destination.
+func Install(pkgFile, destination string) error {
 	mediaInfo, err := LoadMediaInfo(pkgFile)
 	if err != nil {
 		return err
 	}
 	switch mediaInfo.Type {
 	case "application/x-tar":
-		return extractTar(pkgFile, mediaInfo, dir)
+		return extractTar(pkgFile, mediaInfo.Encoding, destination)
 	case "application/zip":
-		return extractZip(pkgFile, dir)
+		return extractZip(pkgFile, destination)
+	case defaultType:
+		return copyFile(pkgFile, destination)
 	default:
 		return fmt.Errorf("unsupported media type: %v", mediaInfo.Type)
 	}
@@ -133,6 +153,9 @@
 }
 
 func extractZip(zipFile, installDir string) error {
+	if err := os.Mkdir(installDir, os.FileMode(0700)); err != nil {
+		return fmt.Errorf("os.Mkdir(%q) failed: %v", installDir, err)
+	}
 	zr, err := zip.OpenReader(zipFile)
 	if err != nil {
 		return err
@@ -175,7 +198,10 @@
 	return nil
 }
 
-func extractTar(pkgFile string, mediaInfo repository.MediaInfo, installDir string) error {
+func extractTar(pkgFile string, encoding string, installDir string) error {
+	if err := os.Mkdir(installDir, os.FileMode(0700)); err != nil {
+		return fmt.Errorf("os.Mkdir(%q) failed: %v", installDir, err)
+	}
 	f, err := os.Open(pkgFile)
 	if err != nil {
 		return err
@@ -183,7 +209,7 @@
 	defer f.Close()
 
 	var reader io.Reader
-	switch enc := mediaInfo.Encoding; enc {
+	switch encoding {
 	case "":
 		reader = f
 	case "gzip":
@@ -194,7 +220,7 @@
 	case "bzip2":
 		reader = bzip2.NewReader(f)
 	default:
-		return fmt.Errorf("unsupported encoding: %q", enc)
+		return fmt.Errorf("unsupported encoding: %q", encoding)
 	}
 
 	tr := tar.NewReader(reader)
diff --git a/services/mgmt/lib/packages/packages_test.go b/services/mgmt/lib/packages/packages_test.go
index 16074ad..6e409cf 100644
--- a/services/mgmt/lib/packages/packages_test.go
+++ b/services/mgmt/lib/packages/packages_test.go
@@ -47,19 +47,27 @@
 		"a/foo.txt perm:600",
 	}
 	for _, file := range []string{zipfile, tarfile, tgzfile} {
-		setupDstDir(t, dstdir)
 		if err := packages.Install(file, dstdir); err != nil {
 			t.Errorf("packages.Install failed for %q: %v", file, err)
 		}
 		files := scanDir(dstdir)
 		if !reflect.DeepEqual(files, expected) {
-			t.Errorf("unexpected result for %q: Got %q, want %q", file, files, expected)
+			t.Errorf("unexpected result for %q: got %q, want %q", file, files, expected)
+		}
+		if err := os.RemoveAll(dstdir); err != nil {
+			t.Fatalf("os.RemoveAll(%q) failed: %v", dstdir, err)
 		}
 	}
-
-	setupDstDir(t, dstdir)
-	if err := packages.Install(binfile, dstdir); err == nil {
-		t.Errorf("expected packages.Install to fail %q", binfile)
+	dstfile := filepath.Join(workdir, "dstfile")
+	if err := packages.Install(binfile, dstfile); err != nil {
+		t.Errorf("packages.Install failed for %q: %v", binfile, err)
+	}
+	contents, err := ioutil.ReadFile(dstfile)
+	if err != nil {
+		t.Errorf("ReadFile(%q) failed: %v", dstfile, err)
+	}
+	if want, got := "This is a binary file", string(contents); want != got {
+		t.Errorf("unexpected result for %q: got %q, want %q", binfile, got, want)
 	}
 }
 
@@ -80,7 +88,7 @@
 	}
 	for _, tc := range testcases {
 		if got := packages.MediaInfoForFileName(tc.filename); !reflect.DeepEqual(got, tc.expected) {
-			t.Errorf("unexpected result for %q: Got %v, want %v", tc.filename, got, tc.expected)
+			t.Errorf("unexpected result for %q: got %v, want %v", tc.filename, got, tc.expected)
 		}
 	}
 }
@@ -194,12 +202,3 @@
 	sort.Strings(files)
 	return files
 }
-
-func setupDstDir(t *testing.T, dst string) {
-	if err := os.RemoveAll(dst); err != nil {
-		t.Fatalf("os.RemoveAll(%q) failed: %v", dst, err)
-	}
-	if err := os.Mkdir(dst, os.FileMode(0755)); err != nil {
-		t.Fatalf("os.Mkdir(%q) failed: %v", dst, err)
-	}
-}