In addition to wielding a 12.3 megapixel Live MOS sensor (the same 4/3 style as found in many mini-DSLRs) the retro-styled E-P1 "Digital Pen" has a three-inch LCD, in-body image stabilisation, a dust reduction system and 19 automatic scene modes. It can also record HD video in 720p/30fps and includes a HDMI TV-out for direct playback.
There will be two Micro Four Thirds lenses available along with the camera for US release in July, a 17mm 1:2.8 Pancake and a 14-42mm 1:3.5-5.6. Price-wise it comes in better than expected at $US749 for body only, or $US799 with the 14-42mm lens. My personal choice, though, would be the body with the 17mm for $US899.
AU: Pricing is still to be announced in Australia, but Olympus will be showing off the camera at PMA in Sydney next week, if you're interested.