Olympus has announced a new model to its Mju range on Tuesday that features a 7x optical zoom lens.

The new model, called the Mju 1060 hopes to offer maximum zoom capabilities without breaking out of the compact mode.

Featuring a 10-megapixel sensor, image stablising technology and a 3.0-inch HyperCrystal LCD screen Olympus is hoping it will be the choice of the digital camera fan this Christmas.

Following other manufacturers, the Mju 1060 will come with Advanced Face Detection technology as standard, Shadow Adjustment Technology and a new Intelligent Auto Mode that allows the camera to detect the five most commonly used scenes automatically.

Acknowledging perhaps that the xD-Picture Card memory format hasn't taken off as well as hoped the model will also sport a microSD card slot normally only reserved for mobile phones.

The Mju 1060 becomes available September 2008 for an approximate value of £259.99.

Other features include an enhanced panorama function and movie recording with sound up to VGA resolution at 30fps.