Panasonic announces the Lumix DMC-GF1 today, their smallest interchangeable-lens system yet. The style echoes Panasonic's ultracompact lineup, but the GF1 is Micro Four Thirds all the way. It sports a 12.1 megapixel sensor, 720p HD video recording, and a 3.0 inch LCD. Two new lenses are also announced with the GF1.

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