Japanese multinational consumer electronics corporation Panasonic has announced that the company is set to launch the Panasonic Lumix GF3 which will be a smaller Interchangeable-Lens camera.

The announcement has been made within a year of the launch of the Panasonic Lumix GF2 Micro Four-Thirds system camera, and now its successor will be even smaller.

The GF3 has a 12-megapixel interchangeable lens and the body is 4.24-inches wide, 2.64-inches tall and 1.28-inches deep without the attached lens. The camera has been made smaller on both the fronts to compete with Sony’s Alpha NEX-C3, which is 4.38 by 2.38 by 1.31 inches and doesn’t have a built-in flash compared to the GF3.

The Lumix GF3 weighs less than 8 ounces without a loaded battery and storage card or without its lens attached. With lens attached, however, it weighs more than 11 ounces.

The camera has the same touch-to-focus capabilities for stills and videos like Lumix GH2 and GF2, a touch-controlled tracking autofocus system and the capability to touch-select focus points using the camera's 3-inch LCD screen fully.

Other features include RAW shooting, 1080i AVCHD video at 60fps and 720p video at 60fps, a pop-up flash, and an accessory port for external flashes and microphones. The camera’s back-mounted thumb wheel can also be used instead of touch-screen for mode selection and other navigation options. The GF3 also offers one-touch access to Intelligent Auto mode via a top-mounted button.

The Lumix GF3 will be available in black, brown, red, and white. It will be sold as a kit which will include a 14mm prime lens, 28mm equivalent when attached to the camera, for $700 starting in July, and as a kit with a 14-42mm zoom lens, 28mm to 84mm when attached, for $600 in August.

Panasonic has termed the camera as the smallest and lightest interchangeable-lens camera with a flash, in a statement.