Panasonic has announced the Lumix DMC-FZ7 digital camera, a 6 megapixel product that's essentially an upgrade from the 5 megapixel FZ5. The camera has a 12x optical zoom with image stabilization, movie mode, and 2.5-inch LCD on the back. The unit also sports a newly-designed battery pack. The Panasonic Lumix FZ7 will list for $399.95 in March 2006.