The Panasonic DMC-GF1 means Olympus should have its "work cut out" to keep up with the manufacturer, according to one reviewer.
T3 said the 12.1-megapixel resolution of the device was "effective" and it is "essential" that it is optically stabilised.
But the camera does not have to be used with its manual features, which is partly down to the manufacturer's "reliable intelligent auto mode" and this could intrigue people who just want to point and click to take a picture.
The device can be connected to a flat panel TV thanks to a side-mounted HDMI port and there is a "fuss free" manually-operated zoom which is better than a "fiddly" function.
And the manufacturer claims the DMC-GF1 has the world's smallest and lightest body, which can produce artistic photos thanks to its My Color mode.
A similar gadget is the "stunning" Olympus E-P2, which T3 said was an "enticing package" with pictures that are "warm in tone" and sharp.
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