The Panasonic Lumix LZ5 distinguishes itself by a 6 megapixel sensor and a stabilized 6X optical zoom in a compact metal body. If it weren't for high noise levels, strong vignetting and edge softness, this camera would have been quite good. It shows that Panasonic made too many compromises for this camera, resulting in a long list of problems.

New to Panasonic cameras are high-ISO modes which are quite pointless. These modes result in images greatly lacking details. The LZ5 is also fairly inflexible compared to competing cameras. Not only does it lack manual controls but its exposures are limited to two apertures and a limited set of shutter-speeds in low-light.

Competing cameras with a 5X optical zoom include the HP Photosmart R817 and the Olympus C5500, which fair better in the image quality department and has full manual controls. Even better compact digital cameras, albeit with shorter zooms, include the Fuji Finepix E550 and the Canon Powershot A610.