Optical image stabilization is becoming the norm on digital cameras gradually as manufacturers keep leap-frogging one-another. Enter the Panasonic Lumix DMC-LZ2K. CNET rate this digicam a 7 out of 10, or Very Good. They said-

“Although the Lumix DC Vario lens doesn’t have the cachet of the Leica optics found on the company’s more expensive 5-megapixel point-and-snap model, Panasonic’s Lumix DMC-LZ2 produced pleasing pictures. Most images were well exposed, with lots of detail in both highlights and shadows, and significantly sharper than the results from some competing 5-megapixel compacts. Visual noise was low at ISO 80 and still not overpowering when we bumped the sensitivity level up to ISO 400. We did notice a bit of cyan fringing around backlit subjects.”

Panasonic Lumix DMC-LZ2 5MP Digital Camera with 6x Image Stabilized Optical Zoom (Black)
Panasonic Lumix DMC-LZ2 5MP Digital Camera with 6x Image Stabilized Optical Zoom (Black)
View product details at amazon
Feature Highlights
* MEGA Optical Image Stabilizer
* 5 Megapixel CCD
* 6x Optical Zoom, 37-222 mm equivalent
* 2″ LCD Monitor
* 14 MB Internal Memory
* Motion Image Recording at 30 fps with Audio
* Spot / 1 / 3 / 5-Point Auto Focus Metering
* ArcSoft® software package included

Standard Features
* Auto Angle Detection
* Built-in Flash
* White Balance Adjustment
* Real-time Histogram
* Composition Guide Lines
* Colour Effect Mode
* ISO Sensitivity Settings (Auto/80/100/200/400)