diff --git a/tools/mesh/net.c b/tools/mesh/net.c
index d1b3f79..f1ef23a 100644
--- a/tools/mesh/net.c
+++ b/tools/mesh/net.c
@@ -730,7 +730,7 @@ static int match_address_range(const void *a, const void *b)
 	uint16_t max = range >> 16;
 	uint16_t min = range & 0xffff;
 
-	return ((max - min) >= (num_elements - 1)) ? 0 : -1;
+	return ((max - min + 1) >= num_elements) ? 0 : -1;
 
 }
 
@@ -749,13 +749,14 @@ uint16_t net_obtain_address(uint8_t num_eles)
 		addr = min;
 		min += num_eles;
 
-		if (min > max)
+		if (min > max) {
 			net.address_pool = g_list_delete_link(net.address_pool,
 								l);
-		else {
+		} else {
 			range = min + (max << 16);
 			l->data = GUINT_TO_POINTER(range);
 		}
+
 		return addr;
 	}
 
@@ -775,23 +776,42 @@ void net_release_address(uint16_t addr, uint8_t num_elements)
 	GList *l;
 	uint32_t range;
 
+	if (addr == UNASSIGNED_ADDRESS)
+		return;
+
 	for (l = net.address_pool; l != NULL; l = l->next)
 	{
 		uint16_t max;
 		uint16_t min;
+		GList *l1 = l->next;
 
 		range = GPOINTER_TO_UINT(l->data);
 
 		max = range >> 16;
 		min = range & 0xffff;
 
-		if (min == (addr + num_elements + 1))
+		if (min == (addr + num_elements))
 			min  = addr;
-		else if (addr && max == (addr - 1))
-			max = addr + num_elements + 1;
+		else if (max == (addr - 1))
+			max = addr + num_elements;
 		else
 			continue;
 
+		/* Check if range pools need to be merged */
+		if (l1) {
+			uint16_t min1;
+
+			range = GPOINTER_TO_UINT(l1->data);
+			min1 = range & 0xffff;
+
+			if (min1 == (max + 1)) {
+				max = range >> 16;
+				l->next = l1->next;
+				net.address_pool = g_list_delete_link(
+							net.address_pool, l1);
+			}
+		}
+
 		range = min + (max << 16);
 		l->data = GUINT_TO_POINTER(range);
 		return;