There are many attractive credit card-sized compacts jostling for market share, so what makes the DMC-FX01 special?

Easy: the inclusion of 28mm wide-angle Leica optics makes it useful for group photos; its 6-megapixel resolution is adequate for poster-sized prints; and an ISO 1600-equivalent High Sensitivity mode for lowlight shooting without fl ash suggests a desire to compete with the likes of Fujifilm.

But perhaps the real trick up its sleeve is the inclusion of optical image stabilisation - or Mega OIS, something that just might help banish camera shake.

After last year's race for larger screen sizes, it seems the ability to shoot in low light without flash or a tripod's the new battleground.

Given the camera's overall dimensions, the 2.5-inch LCD with a better-than-average 207,000- pixel resolution is more than sufficient to compose and review shots. A High Angle mode increases screen visibility when taking awkward shots over the heads of crowds, while overall brightness can be boosted via the Power LCD function.

Both work well; the screen's bright and clear, and you barely notice the lack of an optical viewfinder.

Fast and sturdy

Speed of operation is impressive. The DMCFX01 takes around a second to power up, and there's barely a blink between shots at the highest resolution. A 3fps Continuous mode is the equal of some DSLRs, while shutter delay's slight - the official blurb puts it at 0.005 of a second.

The metal build ensures the camera feels sturdy, although the DMCFX01' s intuitive controls and function buttons have been slightly compromised by that large LCD. Apart from the zoom rocker, which ergonomically encircles the shutter button, controls require fingertip operation.

The DMC-FX01's battery life is very good. Using the camera intermittently over a fortnight, there was no visible drop in performance levels. The two image stabilisation settings - one continuous, the other manually selectable - work well.

Although it's not a total cure for image blur, it proved up to the job of photographing my hyperactive niece under natural light indoors. Also useful for those with young children - or very soft skin - is the Baby setting, hidden away among the 16 Scene modes on offer.