Was it Panasonic’s intention to create a big "buzz" around its first tactile compact? Either way, the Lumix FX500’s technical sheet was found on many websites before the official announcement.  So, does the FX500 deserve all of the attention?

Handling

The first surprise is that the Panasonic Lumix FX500 is rather imposing and especially quite wide.  For those that have already had their hands on this brand’s other compacts, the difference is obvious.  There are two reasons for the added girth: an interesting 5x optical zoom (25-125 mm) and a new tactile screen.  The latter is very large (3 inches) and there is an accompanying stylet.  In the end, while this accessory is more precise, it is more likely you will use the camera with your fingers.  Unfortunately, and like on other models, the LCD is relatively glossy and not too readable in full sun despite adjustments in brightness you may make.  In use, the tactile screen proves to be pleasant even if functions turn out to be rather limited.  By default, the tactile screen enables choosing the area of focus on the screen.  This is an attractive feature but isn’t too efficient given the lack of precision. 
The new Mode button enables accessing priority modes (see box) but unfortunately, in terms of tactile functions the list stops here (if we do not include Play).  Like the Kodak V1273 and contrary to Sony which opted for 100% tactile menus, the FX500 also has buttons and a joypad for changing parameters. For the different settings (ISO, white balance, image size, etc.) you will therefore find the classic interface (with the very practical Quick Menu button) in which you navigate with a flush joypad that is somewhat hard to use.  Otherwise, the FX500’s construction is impressive and the small compact inspires confidence.  Finally, in terms of speed, this Panasonic is relatively reactive with a fast startup, high performance autofocus in most cases and a decent recording time.

Quality of images

In partnership with Leica, Panasonic perfectly masters the productions of lenses.  Like on the FX35, the FX500’s 5x zoom is of superb construction with a 25 mm wide angle that shows little deformation and a small 125 mm which is remarkable for its homogeneity.  The Venus Engine IV processor functions perfectly and eliminates the majority of defects such as chromatic aberration and purple fringes. 
There has been no evolution in terms of noise control.  In low sensitivity (100 ISO), images show grain visible at 100% but this is barely seen on A4 prints or viewing on a 24 inch screen.  Up until 800 ISO, images are of good quality with a proper balance of detail/smoothing.  At 1600 ISO, processing is more severe, but the result is entirely usable for A4s.  Automatic white balance functions well and even under artificial lighting overall colors are quite vivid.  As for the flash and 5 cm macro mode, we had nothing bad to report.  Otherwise, optical stabilization is still as efficient and we obtained satisfactory photos at 1/4 s without a tripod.  Of course, HD video (1280 x 720 pixels) was expected and rendering is identical to what was observed with the FX35:  the overall quality of sequences is good but shimmering is easily visible in blocks of uniform color.  Also, sound is a bit disappointing.