Olympus has expanded their PEN line of cameras. The latest is the E-PL1, which comes in a compact body that packs in a 12.3 megapixel sensor, HD movie recording, a 2.7 inch LCD, image stabilization and a bundled ED 14-42mm f3.5/5.6 zoom lens.

And yes, 720p video recording. There’s also the addition of the pop-up flash. You will have to wait until next month to get your hands on it though. With all these features this compact PEN camera is priced at $600.

[Engadget]