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The Cosmetic mode is part of the Scene Mode and is unique to the DMC-FX68. It allows the user to improve skin tone and complexion and remove wrinkles and blemishes for studio-style portraits.

The camera also features a Sonic Speed auto-focus system that it combines with a start-up speed of just 1.06 seconds, for fast and accurate auto-focus performance.

The DMC-FX68, which replaces the DMC-FX65, has a 14.1-megapixel resolution, a very bright f2.8 25mm wide-angle Leica DC lens and 5x optical zoom. It also allows for recording of HD video in 1280 x 720 p at a rate of 30 frames per second.

Tanya Mudge, Product Marketing Manager—LUMIX, Panasonic Australia, said: "Panasonic is excited to introduce the FX68—a stylish compact camera that is slim enough to take anywhere and packed with features, such as the 25mm wide-angle lens with f2.8 brightness, allowing users to capture incredible images with amazing width and beautiful depth of field."

The camera also features Panasonic's Intelligent Auto mode, which automatically selects the best features for the current conditions. Included in this is the POWER Optical Image Stabiliser—an upgrade of the MEGA OIS—which resolves the effects of hand-shake. According to Panasonic, it has twice the shake the suppression power of previous models, allowing photographers to capture sharp images, even in low-light conditions.

A 2.7-inch, 230,000-dot Intelligent LCD viewing screen with a wide viewing angle automatically adjusts brightness as surrounding brightness levels change, ensuring easy visibility.

The Lumix DMC-FX68 measures just 97 x 54.1 x 21.8mm, weighs 123g and will be available in black from April 2010 for an RRP of $499.