It's been awhile, but Pentax finally released a new camera last week dubbed the Optio S60. It's a 6 megapixel camera with a 2.5-inch LCD screen, 3x optical zoom, and a "simple mode" feature that lets the camera pick out optimal settings for a particular shot. Powered by two AA batteries, it has 11 Mb internal memory, and an SD card slot. Available in October 2005 for under $300.
Pentax Optio S60 Digital Camera [MobileWhack]