more info from Olympus

The Olympus E-P1 marks the formal introduction of the Olympus Micro Four Thirds (4/3) camera system in the form of a high-quality, sub-compact digital camera. Designed around a 12.3-megapixel (17.3 x 13mm) Live MOS imaging sensor, the E-P1 enables pro-quality still and video imaging abilities in a small, unassuming package. Along with a new line of compact M.Zuiko Digital lenses, the new system is compatible with all existing 4/3-format fixed-prime and zoom lenses from 7mm through 800mm (114° to 1.5° AOV).

Clad in ergonomically-designed stainless-steel body panels, the Olympus E-P1 takes many design queues from the Olympus Pen F, a popular half-frame SLR that made its initial debut in 1959. But unlike the original Pen F, the E-P1 has the ability to produce vividly-detailed still photographs and HD video with stereo sound, both of which can be enhanced post-capture using the E-P1's advanced in-camera retouching and audio dubbing tools.

Essentially a 4/3-format DSLR minus the prism and mirror housing (hence the smaller body size), images can be composed and edited using the E-P1's 3" HyperCrystal LCD, which features anti-reflective coatings on its surface to enable live viewing of 100% of the image area under the brightest of lighting conditions. When shooting in manual focus, a 5x magnification of the center of the frame pops up as a focusing aid each time you adjust the focusing ring. (This magnification can be can be manually increased up to 10x)

This kit includes a compact 14-42mm M.Zuiko Digital zoom lens, which with an angle-of-view of 74-28.5 degrees, is an equivalent to a 28-85mm lens on a full-frame DSLR.

Other features found on the Olympus E-P1 include Dust Reduction technology, in-camera Image Stabilization, which enables low-light hand-held shooting with all 4/3-system lenses, advanced shooting modes, and creative post-capture editing tools.

The Olympus FL-14 Flash is a basic but efficient TTL unit for use on the E-P1 Pen or any other Olympus digital camera with TTL capacity.  Short and wide with a black and silver color to match the E-P1's aesthetics, the FL-14 provides excellent efficiency with just 2 small "AAA" batteries.  With straight-forward controls and TTL flash exposure when mounted on the E-P1 or other Olympus digitals, the FL-14 won't intimidate the casual user while still providing perfectly-exposed images with 14mm and longer lenses.