diff --git a/packages/@angular/cli/plugins/postcss-cli-resources.ts b/packages/@angular/cli/plugins/postcss-cli-resources.ts
index deae78cf5140..7cd00695048d 100644
--- a/packages/@angular/cli/plugins/postcss-cli-resources.ts
+++ b/packages/@angular/cli/plugins/postcss-cli-resources.ts
@@ -121,7 +121,7 @@ export default postcss.plugin('postcss-cli-resources', (options: PostcssCliResou
 
     return Promise.all(urlDeclarations.map(async decl => {
       const value = decl.value;
-      const urlRegex = /url\(\s*(?:"([^"]+)"|'([^']+)'|(.+))\s*\)/g;
+      const urlRegex = /url\(\s*(?:"([^"]+)"|'([^']+)'|(.+?))\s*\)/g;
       const segments: string[] = [];
 
       let match;
diff --git a/tests/e2e/tests/third-party/material-icons.ts b/tests/e2e/tests/third-party/material-icons.ts
new file mode 100644
index 000000000000..8e7d6b7ba156
--- /dev/null
+++ b/tests/e2e/tests/third-party/material-icons.ts
@@ -0,0 +1,22 @@
+import {silentNpm, ng} from '../../utils/process';
+import {updateJsonFile} from '../../utils/project';
+import {expectFileToMatch} from '../../utils/fs';
+
+
+export default function() {
+  return Promise.resolve()
+    .then(() => silentNpm('install', 'material-design-icons@3.0.1'))
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson['apps'][0];
+      app['styles'].push('../node_modules/material-design-icons/iconfont/material-icons.css');
+    }))
+    .then(() => ng('build', '--extract-css'))
+    .then(() => expectFileToMatch('dist/styles.bundle.css', 'Material Icons'))
+    .then(() => ng(
+      'build',
+      '--prod',
+      '--extract-css',
+      '--output-hashing=none'
+    ))
+    .then(() => expectFileToMatch('dist/styles.bundle.css', 'Material Icons'));
+}