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Announced just before PMA in February 2005, the DMC-FZ5 is one of two direct sucessors to the popular (and dpreview Highly Recommended) DMC-FZ3. Like its predecessor the FZ5 sports a Leica-branded DC Vario-Elmarit zoom with a whopping 12x optical range (35-420mm equiv), though the larger sensor has resulted in a slightly slower F2.8-F3.3 aperture range. It also boasts the same newly-improved optical image stabilization system and the Venus II engine, which, according to Panasonic's documentation, is now equivalent to shooting at 3 or 4 shutter speed steps faster - (the figure for the FZ20 was quoted as 2 or 3 shutter speed steps).
Aside from the boost from 3 to 5 million pixels (bringing it in line with the high-end DMC-FZ20), the FZ5 has a range of relatively minor changes over the FZ3, including longer battery life, a repositioned shutter release and improved grip design, larger LCD screen, orientation sensor and a new fast focus mode, which Panasonic claims gives a 30% improvement on the previous model.