diff --git a/appveyor.yml b/appveyor.yml
index b6f3cff..d371907 100644
--- a/appveyor.yml
+++ b/appveyor.yml
@@ -8,6 +8,10 @@ cache:
 environment:
   COVERALLS_REPO_TOKEN:
     secure: lFyaxdbvCvXKM+PjmN9FToU8DhsdS474RgaW/bNAu4IBnn7QbfZzDYrjKw33V6Oo
+  global:
+    # lxml will not build appropriately from source on Windows without the
+    # appropriate libxml headers. As a result, make pip use binary packages.
+    PIP_ONLY_BINARY: lxml
   matrix:
 
     - TOXENV: 'py27-notebook'
@@ -39,13 +43,13 @@ environment:
       PYTHON_HOME: C:\Python34
       PYTHON_VERSION: '3.4'
       PYTHON_ARCH: '32'
-    
+
     - TOXENV: 'py34-notebook43'
       TOXPYTHON: C:\Python34\python.exe
       PYTHON_HOME: C:\Python34
       PYTHON_VERSION: '3.4'
       PYTHON_ARCH: '32'
-    
+
     - TOXENV: 'py34-notebook44'
       TOXPYTHON: C:\Python34\python.exe
       PYTHON_HOME: C:\Python34
diff --git a/conda.recipe/meta.yaml b/conda.recipe/meta.yaml
index 92b17f8..e0ca81c 100644
--- a/conda.recipe/meta.yaml
+++ b/conda.recipe/meta.yaml
@@ -33,6 +33,7 @@ requirements:
     - setuptools
     - tornado
     - traitlets >=4.1
+    - lxml >=3.8.0
 
 test:
   imports:
diff --git a/setup.py b/setup.py
index 1e07574..a27c516 100755
--- a/setup.py
+++ b/setup.py
@@ -72,6 +72,7 @@ if you encounter any problems, and create a new issue if needed!
             'pyyaml',
             'tornado',
             'traitlets >=4.1',
+            'lxml >=3.8.0'
         ],
         extras_require={
             'test': [
diff --git a/src/jupyter_contrib_nbextensions/nbconvert_support/embedhtml.py b/src/jupyter_contrib_nbextensions/nbconvert_support/embedhtml.py
index adb3a1f..ca5fb0e 100644
--- a/src/jupyter_contrib_nbextensions/nbconvert_support/embedhtml.py
+++ b/src/jupyter_contrib_nbextensions/nbconvert_support/embedhtml.py
@@ -2,8 +2,8 @@
 
 import base64
 import os
-import re
 
+import lxml.etree as et
 from ipython_genutils.ipstruct import Struct
 from nbconvert.exporters.html import HTMLExporter
 
@@ -25,15 +25,20 @@ class EmbedHTMLExporter(HTMLExporter):
         jupyter nbconvert --to html_embed mynotebook.ipynb
     """
 
-    def replfunc(self, match):
+    def replfunc(self, node):
         """Replace source url or file link with base64 encoded blob."""
-        url = match.group(1)
+        url = node.attrib["src"]
         imgformat = url.split('.')[-1]
+        b64_data = None
+        prefix = None
+
+        if url.startswith('data'):
+            return  # Already in base64 Format
+
+        self.log.info("try embedding url: %s, format: %s" % (url, imgformat))
+
         if url.startswith('http'):
-            data = urlopen(url).read()
-        elif url.startswith('data'):
-            img = '<img src="' + url + '"'
-            return img
+            b64_data = base64.b64encode(urlopen(url).read()).decode("utf-8")
         elif url.startswith('attachment'):
             imgname = url.split(':')[1]
             available_formats = self.attachments[imgname]
@@ -41,40 +46,47 @@ class EmbedHTMLExporter(HTMLExporter):
             for imgformat in self.config.NbConvertBase.display_data_priority:
                 if imgformat in available_formats.keys():
                     b64_data = self.attachments[imgname][imgformat]
-                    img = '<img src="data:' + imgformat + \
-                          ';base64,' + b64_data + '"'
-                    return img
-            raise ValueError(
-                'Could not find attachment for image "%s" in notebook' %
-                imgname)
+                    prefix = "data:%s;base64," % imgformat
+            if b64_data is None:
+                raise ValueError("""Could not find attachment for image '%s'
+                                    in notebook""" % imgname)
         else:
             filename = os.path.join(self.path, url)
             with open(filename, 'rb') as f:
-                data = f.read()
+                b64_data = base64.b64encode(f.read()).decode("utf-8")
 
-        self.log.info("embedding url: %s, format: %s" % (url, imgformat))
-        b64_data = base64.b64encode(data).decode("utf-8")
-        if imgformat == "svg":
-            img = '<img src="data:image/svg+xml;base64,' + \
-                b64_data + '"'
-        elif imgformat == "pdf":
-            img = '<img src="data:application/pdf;base64,' + \
-                b64_data + '"'
-        else:
-            img = '<img src="data:image/' + imgformat + \
-                ';base64,' + b64_data + '"'
-        return img
+        if prefix is None:
+            if imgformat == "svg":
+                prefix = "data:image/svg+xml;base64,"
+            elif imgformat == "pdf":
+                prefix = "data:application/pdf;base64,"
+            else:
+                prefix = "data:image/" + imgformat + ';base64,'
+
+        node.attrib["src"] = prefix + b64_data
 
     def from_notebook_node(self, nb, resources=None, **kw):
         output, resources = super(
             EmbedHTMLExporter, self).from_notebook_node(nb, resources)
 
         self.path = resources['metadata']['path']
+
+        # Get attachments
         self.attachments = Struct()
         for cell in nb.cells:
             if 'attachments' in cell.keys():
                 self.attachments += cell['attachments']
-        regex = re.compile('<img\s+src="([^"]+)"')
 
-        embedded_output = regex.sub(self.replfunc, output)
+        # Parse HTML and replace <img> tags with the embedded data
+        parser = et.HTMLParser()
+        root = et.fromstring(output, parser=parser)
+        nodes = root.findall(".//img")
+        for n in nodes:
+            self.replfunc(n)
+
+        # Convert back to HTML
+        embedded_output = et.tostring(root.getroottree(),
+                                      method="html",
+                                      encoding='unicode')
+
         return embedded_output, resources
diff --git a/tests/test_exporters.py b/tests/test_exporters.py
index 8c3816a..7afcea9 100644
--- a/tests/test_exporters.py
+++ b/tests/test_exporters.py
@@ -5,6 +5,7 @@ import io
 import os
 from functools import wraps
 
+from lxml import etree as et
 from nbconvert.tests.base import TestsBase
 from nbformat import v4, write
 
@@ -24,32 +25,21 @@ def _with_tmp_cwd(func):
 
 class TestNbConvertExporters(TestsBase):
 
-    def check_stuff_gets_embedded(self, nb, exporter_name, to_be_included=[]):
+    def check_html(self, nb, exporter_name, check_func):
         nb_basename = 'notebook'
         nb_src_filename = nb_basename + '.ipynb'
         with io.open(nb_src_filename, 'w', encoding='utf-8') as f:
             write(nb, f, 4)
 
-        # convert with default exporter
-        self.nbconvert('--to {} "{}"'.format('html', nb_src_filename))
-        nb_dst_filename = nb_basename + '.html'
-        assert os.path.isfile(nb_dst_filename)
-        statinfo = os.stat(nb_dst_filename)
-
-        os.remove(nb_dst_filename)
-
         # convert with embedding exporter
+        nb_dst_filename = nb_basename + '.html'
         self.nbconvert('--to {} "{}"'.format(exporter_name, nb_src_filename))
-        statinfo_e = os.stat(nb_dst_filename)
-        assert os.path.isfile(nb_dst_filename)
 
-        assert statinfo_e.st_size > statinfo.st_size
-
-        with io.open(nb_dst_filename, 'r', encoding='utf-8') as f:
+        with open(nb_dst_filename, 'rb') as f:
             embedded_nb = f.read()
-
-        for txt in to_be_included:
-            assert txt in embedded_nb
+            parser = et.HTMLParser()
+            root = et.fromstring(embedded_nb, parser=parser)
+            check_func(byte_string=embedded_nb, root_node=root)
 
     @_with_tmp_cwd
     def test_embedhtml(self):
@@ -60,8 +50,14 @@ class TestNbConvertExporters(TestsBase):
                 source="![testimage]({})".format(path_in_data('icon.png'))
             ),
         ])
-        self.check_stuff_gets_embedded(
-            nb, 'html_embed', to_be_included=['base64'])
+
+        def check(byte_string, root_node):
+            nodes = root_node.findall(".//img")
+            for n in nodes:
+                url = n.attrib["src"]
+                assert url.startswith('data')
+
+        self.check_html(nb, 'html_embed', check_func=check)
 
     @_with_tmp_cwd
     def test_htmltoc2(self):
@@ -70,8 +66,11 @@ class TestNbConvertExporters(TestsBase):
             v4.new_code_cell(source="a = 'world'"),
             v4.new_markdown_cell(source="# Heading"),
         ])
-        self.check_stuff_gets_embedded(
-            nb, 'html_toc', to_be_included=['toc2'])
+
+        def check(byte_string, root_node):
+            assert b'toc2' in byte_string
+
+        self.check_html(nb, 'html_toc', check_func=check)
 
     @_with_tmp_cwd
     def test_html_collapsible_headings(self):
@@ -84,5 +83,8 @@ class TestNbConvertExporters(TestsBase):
             v4.new_markdown_cell(source=('### level 3 heading')),
             v4.new_code_cell(source='a = range(1,10)'),
         ])
-        self.check_stuff_gets_embedded(
-            nb, 'html_ch', to_be_included=['collapsible_headings'])
+
+        def check(byte_string, root_node):
+            assert b'collapsible_headings' in byte_string
+
+        self.check_html(nb, 'html_ch', check_func=check)