Announced at the end of July (alongside the lower-spec FX2), the DMC-FX7 is an ultra-compact replacement for the well-respected FX5. As well as being smaller than the FX5, the FX7 boasts the Venus II engine for improved responsiveness and the new two-mode MEGA O.I.S image stabilization used to great acclaim in the FZ3/FZ15/FZ20 models. Panasonic has also managed to squeeze a huge 2.5-inch LCD screen onto the back of the FX7, though it did so at the expense of an optical viewfinder.