Olympus has steadily released a stream of retro-inspired PEN micro-four thirds cameras over the past few years, and has now expanded the classic 1970's styling down to its compact Stylus line-up. The Stylus SH-1 has a metal body made from aluminium alloy and a (synthetic) leather grip, which should help it stand out from the huge selection of compact cameras already on the market.

Olympus hasn't prioritised design over features, however. With a 16-megapixel back side illuminated (BSI) CMOS sensor and Olympus' TruePic VII image processor, the Stylus SH-1 has great image quality credentials, but Olympus has also added 5-axis optical image stabilisation - a world's first, and a step above the usual pitch and yaw stabilisation found on most compact cameras. It should help shoot pin-sharp images and record smooth Full HD video - even at the maximum 24x optical zoom, which has a 35mm equivalent range of 25-600mm.

A maximum 6,400 ISO and pop-up flash should help with low-light shooting, while the 3in, 460k dot LCD touchscreen should make it easy to frame your photos. The camera also has integrated Wi-Fi, for sharing photos and videos with a smartphone, or to turn your phone into a remote shutter. It supports zoom and selective focus, giving you complete control even when you aren't holding the camera itself.

Like the more expensive PEN range, the Stylus SH-1 will also launch with a set of genuine leather accessories, including body jackets and shoulder straps, which protect the camera or make it easier to carry around.

The SH-1 will be available in black, silver or white colours from the end of April onwards, with a UK RRP of £349.99.