The DMC-LX2 features a 10.2-megapixel 16:9 aspect CCD and the aspect ratio can be easily selected between 16:9 or 3:2 in addition to the conventional 4:3 on a shot-by-shot-basis with a switch on the lens barrel to best suit the composition of the image. Even after shooting, the 16:9 ratio can be converted to 3:2 or 4:3 within the camera. With 10.2 Megapixels of resolution, you'll be able to print extremely detailed images at print sizes up to 20x30."

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The DMC-LX2 features an f/2.8 4x optical zoom 28mm wide angle Leica DC Vario-Elmarit lens with an equivalent focal length of 28mm to 112mm on a 35 mm film camera. Incorporating three aspherical elements, this lens provides high optical performance while preserving the compactness of the unit. The Extra Optical Zoom, made possible by using the center part of 10.2-megapixel high-resolution CCD, further extends the zoom ratio to 5.5x for 5-megapixel image recording in 16:9 aspect with minimal deterioration of image quality.

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The MEGA O.I.S. (Optical Image Stabilizer) system compensates for handshakes - the major cause of blurred images. Every slight hand-shake movement is detected accurately with the sampling frequency at 4,000 times per second and is compensated to render clear, sharp images. In addition, the movement of the subject, the other major cause of blurred images, is suppressed by Intelligent ISO Control (I.I.C.) and available ISO1600 high sensitivity recording capabilities. The incorporation of I.I.C. allows the automatic adjustment of the ISO setting and shutter speed that best suits the situation by analyzing the speed of subject movement. If the subject is moving, the ISO setting would automatically rise to allow a higher shutter speed. On the other hand, if the subject is still and no movement is detected, you can take beautiful natural images with a low ISO setting.

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The DMC-LX2 camera utilizes the Venus Engine III Image Processing LSI to realize high-sensitivity recording. The noise reduction system is greatly improved by removing noise at the processing stages in series. First, critical noise is roughly undraped and the chromatic noise and the luminance noise are separated to respectively go through the supplemental noise reduction process so that the remaining noise is appropriately minimized. Furthermore, With its multi-task image processing capability, the Venus Engine III also boasts outstanding response time with a shutter release time lag of as short as 0.009 seconds and a shutter interval of 0.6 seconds. Together with the fast startup time of approx. 1.3 seconds, the quick response of DMC-LX2 enables easy capture of those spur-of-the-moment shots. Another benefit of the energy-efficient Venus Engine III is its long battery life - sufficient to shoot approximately 300 pictures (CIPA Standard) on a single charge.

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The easy-to-use joystick operation facilitates ease-of-use and thereby provides the user with the ability to take full advantage of the multitude of functions offered by the camera. With the joystick, you can set focus and exposure manually and also quickly shortcut to frequently used variables by just pressing and holding the joystick even while monitoring a subject on the LCD. It also allows for quick access to exposure compensation and selection of one out of nine focusing areas.

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The AF mode can be selected according to the shooting situation: 9-point, 3-point high speed, 1-point high speed, 1-point normal speed, and Spot. In the 1-point and 1-point high-speed AF mode, the AF area is selectable from the nine focusing areas with the joystick to best fit the composition of the subjects. Also, the AF assist lamp helps quick, accurate focusing in situations where focusing is difficult due to the lack of light. The AF/AE lock button also succeeded the predecessor. A switch on the side of the lens barrel lets you quickly change the focus mode between MF, AF, or Macro AF. When you focus in the Manual Focus mode, not only the focus distance but also the DOF (depth of field) according to the zoom range and aperture is displayed. An MF assist function enlarges the center of the image to make focusing easier. The focusing area can be enlarged up to 4x and is movable, which also contributes to easy and comfortable manual focusing.

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The 2.8" 16:9 Wide format LCD display makes it easy to view photos taken in the 16:9 format. With a High resolution of 207,000 pixels and the pixel mixed readout method performed at the CCD achieves high sensitivity to offer sufficient brightness for easy shooting even in low-lit situations. The Power LCD function boosts the brightness level by 40% to provide a clear view even in sunny outdoors, and the High Angle mode makes the display extremely easy to view from low angles, for example, when holding the camera up high to take pictures over a crowd.

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The DMC-LX2 is capable of recording 4:3 VGA (640 x 480) and 16:9 wide VGA (848 x 480) motion images at 30 fps. Shooting is one thing but viewing is another, and you will be suitably impressed by the 16:9 moving image when it is displayed on a wide-screen TV. In addition, the LX2 can record motion images in high definition (1280 x 720) format at 15 fps. Furthermore, the pixel mixed readout method assists the bright motion image recording even in the low-lit situations.

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With seventeen Scene Modes, the DMC-LX2 can assist the user in a wide range of photographic situations. For Example, the "Beach" mode is perfect for shooting in strong sunlight and the "Aerial" mode assists with shooting through the windows of an airplane. Furthermore, the "High Sensitivity" mode, made possible by the pixel-mixed readout method by the CCD, is ideal for shooting moving subjects clearly without blurring by providing sensitivity as high as ISO3200. On the other hand, in the "Simple" mode, almost all adjustments are automatically set by the camera processor, even including the backlight compensation, allowing even entry-level users to take beautiful images easily.

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The DMC-LX2 includes 13MB of built-in memory to serve not just as a tool for shooting images but also as a digital album, to enjoy seeing and showing your favorite pictures. The camera memory can be expanded using MultiMediaCards, Secure Digital Cards, or SDHC Memory Cards that are available in capacities of 4GB and more.

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With PictBridge direct printing, users can make prints by just connecting the DMC-LX2 camera to a Pictbridge -compatible printer via included USB cable. The Direct Print mode is easily accessible via the mode dial of the LX2 so that you can easily access the print control features

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The DMC-LX2 includes a host of editing software including ArcSoft PhotoImpression, and ArcSoft Panorama Maker in addition to the USB Driver, Lumix Simple Viewer, and Photo Fun Studio. To edit and develop RAW files, SILKYPIX Developer Studio 2.0SE software is included so you can freely adjust various setting such as exposure, or white balance, and take maximum advantage of the RAW file format.