Panasonic also say that the five megapixel DMC-TZ1 also comes with a "world first integration of a retractable lens system with folded optics technology".

Panasonic's Adam Roberts said: "The DMC-TZ1 is the perfect travel companion.  It is small, compact and ready to shoot in a wide range of photographic situations, with its powerful 10x zoom and ‘dual image stabilisation' system of MEGA OIS and high sensitivity, supported by impressive shooting response, the DMC-TZ1 has it all".

The MEGA OIS (optical image stabiliser) reduces handshake blurring when taking long zoom shots, low light and night-time shots: this in turn lets the user take the advantage of high shutter speeds and larger ISO settings. The TZ1 has also an integrated new image processing LSI (large scale integration) technology called the Venus Engine III. This technology is claimed to detect both chromatic and luminance noise separately, suppressing chromatic noise levels which reduce image quality.

The 2.5 inch, high-resolution (207K) viewing screen automatically adjusts to suit surrounding brightness levels. It also comes with a recording capacity of 250 pictures on a single charge and starts up in .95 seconds. Included in the silver little camera is the choice of 18 scene modes. These include "beach", for strong lighting, "aerial", for shooting through the window of planes and "underwater" mode for shooting with the additional waterproof housing. This is claimed to go to depths of 40 metres and holds "superb natural colouring".

Price: $659

See www.panasonic.com.au