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Olympus recently released their new Micro Four Thirds Pen EP-1 camera. It's bragging rights include being the world's smallest 12.3-megapixel camera with interchangeable lenses. It can record HD video and audio, create slideshows, and, of course, take quality stills. The full specs can be found here.

It fits easily in one hand, making it perfect casual camera to keep in a purse or coat pocket. Olympus didn't stop at just making a tiny Pen, they added all their standard bells and whistles. It has the same art filters, shadow adjustments, face detection, scene modes, etc. of bulkier DSLRs.

For the photography fledgling, if you leave it on iAUTO, the camera will choose a scene mode to suit your subject for you. For example, point it at a mountain range and it will put itself on landscape.

If you want the image to correct skin tone inconsistency or bumps, users must manually choose ePortrait. Having to nudge your camera dial is a far cry from tooling around in Photoshop.

The E-P1's multiple exposure feature is handy because it lets you see what the end result will be before you have taken your second shot.

It comes with either the viewfinder depicted below or the black lens pictured at the top of this post.

The camera is said to fit any comparable Micro Four Thirds lens. The Olympus lenses are M. Zuiko Digitals which run for about $300 a piece. Users can load the camera up with extras like an external flash.

Overall, I say that this camera is great for a hobbyist looking to upgrade from a point and shoot. It is easy to use and the features are nice for someone that wants to quickly upload and share photographs without messing in photoshop.

To nab the the E-P1 with it's 80s vibe exterior will set you back $800. However, wait until the holiday season gets into full swing and you might save a few bucks with the winter sales.

UPDATE: Olympus Pen EP-2 announced! Check out this site for a comparison with the EP-1.