Externals Overlay Icon?

We have just started using externals and it seems that each folder that
contains externals definitions appears with the "!" icon that normally
indicates something has changed.

Is this by design?

TortoiseSVN 1.3.2, Build 5840 - 32 Bit
Subversion 1.3.0,
apr 0.9.7
apr-iconv 0.9.7
apr-utils 0.9.7
berkeley db 4.3.28
neon 0.25.4
OpenSSL 0.9.8a 11 Oct 2005
zlib 1.2.3

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Received on Sun Apr 23 09:14:27 2006