diff --git a/README.rst b/README.rst
index 4a4f53f..5d1f17e 100644
--- a/README.rst
+++ b/README.rst
@@ -17,6 +17,10 @@ Handles multi-API versions of Azure Storage Data Plane originally from https://g
 
 Change Log
 ----------
+0.3.5
++++++
+* Fix package problem: update prg_resources to pkgutil
+
 0.3.4
 +++++
 * Remove __init__.py under azure
diff --git a/azure/__init__.py b/azure/__init__.py
new file mode 100644
index 0000000..56200e1
--- /dev/null
+++ b/azure/__init__.py
@@ -0,0 +1 @@
+__path__ = __import__('pkgutil').extend_path(__path__, __name__)
\ No newline at end of file
diff --git a/azure/multiapi/__init__.py b/azure/multiapi/__init__.py
index 849489f..56200e1 100644
--- a/azure/multiapi/__init__.py
+++ b/azure/multiapi/__init__.py
@@ -1 +1 @@
-__import__('pkg_resources').declare_namespace(__name__)
+__path__ = __import__('pkgutil').extend_path(__path__, __name__)
\ No newline at end of file
diff --git a/azure/multiapi/cosmosdb/__init__.py b/azure/multiapi/cosmosdb/__init__.py
index 849489f..56200e1 100644
--- a/azure/multiapi/cosmosdb/__init__.py
+++ b/azure/multiapi/cosmosdb/__init__.py
@@ -1 +1 @@
-__import__('pkg_resources').declare_namespace(__name__)
+__path__ = __import__('pkgutil').extend_path(__path__, __name__)
\ No newline at end of file
diff --git a/azure/multiapi/storage/__init__.py b/azure/multiapi/storage/__init__.py
index 849489f..56200e1 100644
--- a/azure/multiapi/storage/__init__.py
+++ b/azure/multiapi/storage/__init__.py
@@ -1 +1 @@
-__import__('pkg_resources').declare_namespace(__name__)
+__path__ = __import__('pkgutil').extend_path(__path__, __name__)
\ No newline at end of file
diff --git a/azure/multiapi/storagev2/__init__.py b/azure/multiapi/storagev2/__init__.py
index 849489f..56200e1 100644
--- a/azure/multiapi/storagev2/__init__.py
+++ b/azure/multiapi/storagev2/__init__.py
@@ -1 +1 @@
-__import__('pkg_resources').declare_namespace(__name__)
+__path__ = __import__('pkgutil').extend_path(__path__, __name__)
\ No newline at end of file
diff --git a/setup.py b/setup.py
index 9135313..c76c94a 100644
--- a/setup.py
+++ b/setup.py
@@ -35,7 +35,7 @@
 
 setup(
     name='azure-multiapi-storage',
-    version='0.3.4',
+    version='0.3.5',
     description='Microsoft Azure Storage Client Library for Python with multi API version support.',
     long_description=open('README.rst', 'r').read(),
     license='MIT',
@@ -57,7 +57,7 @@
         'License :: OSI Approved :: Apache Software License',
     ],
     zip_safe=False,
-    packages=find_packages(),
+    packages=find_packages(exclude=["azure"]),
     install_requires=[
         'azure-common',
         'cryptography',