Panasonic unveiled the company's first digital camera with a 3-inch touch-screen LCD: the Lumix DMC-FX500. The digital camera is packed with features such as ultra-wide an lens of 25mm which also provides 5x optical zoom, or 125mm in 35mm-equivalent. The tiny package houses a 10.1 megapixel sensor and features the ability to record High Definition (HD) video in 1280 x 720p resolution

"With the FX500's touch-screen operation, we are giving our consumers a new interface that we think will prove extremely intuitive during playback, photo organization and of course -- helping to take high-quality photos," said Alex Fried, National Marketing Manager, Imaging, Panasonic Consumer Electronics Company in a statement.

The FX500 combines joystick and touchscreen operation which the company alleges makes it easier to control. Also, the camera features advanced Intelligent Auto technologies, which enables automatic fine-tuning of settings which engages without user interaction.

"The FX500 represents a new flagship model for Panasonic, as we add brand-new capabilities to our already popular, slim and stylish FX-Series of LUMIX digital cameras and we introduce another model that features a 25mm ultra-wide-angle lens," said Fried.

There's also the MEGA O.I.S. optical stabilization system. It works by employing gyro-sensors which detect hand-shake and the lens system shifts to compensate, helping to prevent hand-shake from creating a blurry image. The Panasonic LUMIX DMC-FX500 will be available in black and silver models for a manufacturer’s suggested retail price of $399.95 in May 2008, the company said in its statement.