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Release planning for incremental software development assigns features to releases such that technical, resource, risk and budget constraints are met. Planning of software releases and allocation of resources cannot be handled in isolation. A feature can be offered as part of a release only if all its necessary tasks are done before the given release date. We assume a given pool of human resources with different degrees of productivity to perform different types of tasks. To address the inherent difficulty of this process, we propose a two-phased optimization approach that combines the strength of two existing solution methods. The industrial applicability of the approach is primarily directed towards mature organizations having systematic development and measurement processes in place. The expected practical benefit of the planning method is to provide release plan solutions that achieve a better overall business value (e.g., expressed by the degree of stakeholder satisfaction) by better allocation of resources. Without ignoring the importance of the human expert in this process, the contributions of the paper are seen in making the overall process more objective and the resulting decisions more transparent.