Olympus has just announced their newest and smallest digital SLR. In fact, the 10-megapixel Olympus E-420 is the smallest and lightest digital SLR yet. It’s almost 20% lighter than Nikon’s D40x / D40 / D60 (they share the same body) – formerly the smallest and lightest digital SLR. Olympus makes a further claim to small and light by introducing a new Zuiko Digital 25mm f/2.8 lens that’s less than an inch thick. The new lens is equivalent to a 50mm in the 35mm format and makes for a super compact, full-featured DSLR shooting package.

Besides being super compact, the new Olympus E-420 has improved Live View auto focus, sophisticated Face Detection, and improved HyperCrystal II LCD display with 176-degree angle-of-view, Shadow Adjust Technology in-camera processing, TruePic III image processing, and Perfect Shot Preview. The only thing it doesn’t have is Olympus’ in-camera image stabilization.

At $499 for body only, the camera is clearly being targeted at the entry-level digital SLR market. However, being the smallest and lightest DSLR will also make it attractive to outdoor photographers and backpackers who need to travel light. We really enjoyed the the Olympus E-510 because it’s so small and light. And the 2x digital crop factor of the Four Thirds System lenses means you get a lot more reach with smaller, lighter lenses.

The new 50mm lens may also attract street shooters. With the 176-degree angle-of-view Live View LCD and the new 50mm lens, the E-420 might be used almost like a rangefinder or top-view ground glass viewfinder camera. We’ll have to wait and see if that’s possible. But small, light, and inconspicuous is always desirable for street and other types of candid people photography.

More on the new Olympus E-420:
Olympus E-420 press release
Olympus E-420 product photos
Olympus E-420 specs