Latex: wrong reference on Figure

Wrong

\begin{figure}[h]
 \label{fig:foo}
 \centering
 \includegraphics[scale=0.4]{images/foo.eps}
 \caption{blah blah}
\end{figure}   

\ref{fig:foo} shows wrong reference!

Solution: label should be the last line!

\begin{figure}[h]
 \centering
 \includegraphics[scale=0.4]{images/foo.eps}
 \caption{blah blah}
 \label{fig:foo}
\end{figure}