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compiler gives message: unrecognized option -O3

On my Windows7 the compiler does not accept the command line option -O3:

error: C3900U: Unrecognized option: '-O3'.

On XP it compiles ok. Projects settings are exactly the some on Win7 and XP.

Device is Cortex-M0 and compiler version: armcc.exe V4.1.0.894

What can be wrong?
Thanks in advance