gcc -v:
Using built-in specs.
COLLECT_GCC=gcc
COLLECT_LTO_WRAPPER=/usr/lib/gcc/i686-linux-gnu/4.7/lto-wrapper
Target: i686-linux-gnu
Configured with: ../src/configure -v --with-pkgversion='Ubuntu/Linaro 4.7.2-2ubuntu1' --with-bugurl=file:///usr/share/doc/gcc-4.7/README.Bugs --enable-languages=c,c++,go,fortran,objc,obj-c++ --prefix=/usr --program-suffix=-4.7 --enable-shared --enable-linker-build-id --with-system-zlib --libexecdir=/usr/lib --without-included-gettext --enable-threads=posix --with-gxx-include-dir=/usr/include/c++/4.7 --libdir=/usr/lib --enable-nls --with-sysroot=/ --enable-clocale=gnu --enable-libstdcxx-debug --enable-libstdcxx-time=yes --enable-gnu-unique-object --enable-plugin --enable-objc-gc --enable-targets=all --disable-werror --with-arch-32=i686 --with-tune=generic --enable-checking=release --build=i686-linux-gnu --host=i686-linux-gnu --target=i686-linux-gnu
Thread model: posix
gcc version 4.7.2 (Ubuntu/Linaro 4.7.2-2ubuntu1) 

uname -a:
Linux silvioricardoc-laptop 3.5.0-27-generic #46-Ubuntu SMP Mon Mar 25 20:00:05 UTC 2013 i686 i686 i686 GNU/Linux

Command-line:
gcc -Wall -Wextra code.c


Description:
GCC eliminates all code following a call to a non-returning function, even if this code includes an asm label that can be jumped to. In the latter case, it will generate the "jump-to-label" assembly output, but the code will fail to link due to the missing label.

The problem may be the fact that GCC does not know when an asm label can be jumped into, but in this case, the correct solution should be to act conservatively and keep that part of the code intact.