The new Leica Digilux 2 was the surprise winner in the DIMA digital camera shootout at this year's PMA. The DIMA shootout is a blind test that anyone at PMA is allowed to participate in. Cameras are categorized by price. The DIMA tests might be one of the best indicators of camera image quality since they're so controlled, so many people can participate, and they really are 100% unbiased. So Leica winning for best image quality is very significant and the people at Leica are very, very happy.
The new camera also has more of a Leica look and feel than its predecessor, the Digilux 1. The Digilux 2 uses a 5 megapixel CCD sensor, has a 7-22.5 f/2.0-2.4 aspherical Leica DC Vario-Summicron lens (35mm equiv. 28-90mm), full manual as well auto exposure controls, video recording mode, and it uses SD Memory and Multimedia Memory Cards. I think this camera means that Leica has absolutley arrived as a digital camera company.
And just to remind you that the new Leica camera is the result of a partnership between Leica and Panasonic, the rear view photo is of the new Panasonic Lumix counterpart.