Canon have announced the new 8 megapixel Canon Powershot S5 IS, an update to the Canon Powershot S3 IS, it features a 12x optical zoom lens with image stabilisation, a swivelling / rotating 2.5" screen, ISO upto 1600, and VGA video recording with stereo sound, available in June:

"May 2007: Canon today announces the launch of the 12x optical zoom, 8.0 Megapixel PowerShot S5 IS. The new compact inherits optical Image Stabilizer (IS) technology, professional-grade optics and extensive movie functions while introducing a host of new features designed to increase the photographer’s success rate.

Powered by Canon’s DIGIC III image processor, Face Detection Technology improves focus, exposure and flash output for people shots while the new Red-Eye Correction feature effectively solves red-eye problems in captured photos. An increased sensitivity range of  ISO 80-1600 complements the optical IS system for extended low light performance."