Annan's Scottish Third Division play-off hopes were dealt a blow as they fell to a home defeat against struggling Montrose.
The visitors took the lead in spectacular fashion five minutes in when striker Gary Wood demonstrated his acrobatics to direct an overhead kick into the back of the net from Douglas Cameron's long ball.
Annan found the leveller midway through the first half, Aaron Muirhead converting from the penalty spot after Montrose midfielder Jamie Winter had felled Sean O'Connor in the box.
Winter made amends just before the break however, as he netted from the spot following Alex Mitchell's foul on Martin Boyle to hand Montrose the advantage once more.
The second half proved to be something of a non-event as Montrose stood firm to earn just their second win in six games.
Annan Athletic: Alex Mitchell, Muirhead, Peter Watson,Swinglehurst (MacBeth 46), McGowan, McKenna, Steele, Jardine, Sloan, Winters (Gilfillan 58), O'Connor (McKechnie 80).Subs Not Used: Summersgill, Danny Mitchell.
Booked: Alex Mitchell, Peter Watson.
Goals: Muirhead 27 pen.
Montrose: Andrews, McNalley, Cambell, Lunan, Douglas Cameron, Young, Crawford, Winter, Johnston, Boyle, Gary Wood (McPhee 30). Subs Not Used: Sandy Wood, McGowan, Crighton.
Goals: Gary Wood 5, Winter 43 pen.
Ref: Greg Aitken