The Panasonic Lumix DMC-FZ5 makes some marked improvements over the earlier Lumix FZ3. The most notable is the larger 1/2.5-inch CCD with 5 effective megapixels and a Venus Engine imaging processor. The FZ5 still keeps the best features from its little sibling: the Leica 12x optical zoom lens, two modes of image stabilization, a full range of automatic and manual modes, and the same body size and shape. The FZ5 includes a lithium ion battery with a charger, a lens hood, a full suite of software, and other accessories. There are a few drawbacks, such as the small 1.8-inch LCD and loud zooming function, but Panasonic keeps this digital camera in the running with a $499 retail price tag and flashy features like flip animation and sleep mode.