Thankfully, the fact that it’s available in black, red or blue isn’t the Panasonic G1’s most notable feature.

It’s the first digital camera to adopt the new Micro Four Thirds system, an new version of a standard co-developed by Olympus and Panasonic as a means of making smaller cameras that can use interchangeable lenses.

So if you’ve ever thought about replacing your compact camera but have been put off getting a digital SLR by its bulk and weight, the 12-megapixel G1 may mean it’s time to re-consider.

It's not an SLR camera: it omits the optical viewfinder found on SLRs in favour of using the screen to compose shots, or the electronic viewfinder above it. Luckily both are extremely clear and the 3in screen can be flipped outwards and twister to get the just right angle for a shot.

Maintaining the theme of user friendliness the G1 also has a so-called Intelligent Auto mode in which it recognises the subjects you’re pointing it at and switches its settings to produce the best results.

Face detection, image stabilisation (to combat camera shake), automatic ISO selection and Intelligent exposure also combine to allow users to point and shoot to start out and then move on to achieve more professional-looking results. Although a new system requires new lenses, and there’s inevitably less choice to start with than already up-and-running alternatives, the G1 can use existing older Four Thirds lenses from Olympus or Panasonic through an adapter (sold separately).

While the G1 still can't claim to be a pocket camera, with a 14-45mm kit lens attached it does feel considerably lighter than competing starter models such as the Pentax K-m above, which is a true SLR.

Images are saved to removable SD memory cards and results were smooth and colourful, with the auto modes working well to deliver correct exposures and the lens giving a surprisingly high level of detail. Results at low light and ISO3200 were similar in noise levels to those delivered at ISO1600 by competing cameras. There's also an HDMI port on the camera so it can be hooked up directly to a high-definition television set.

To conclude, the G1 betters what we expected from an entry-level model, and it's further helped by the fact that shopping for it online can shave £100 off the list price.