Olympus has announced the 3.2-megapixel Camedia AZ-1 compact digital, using a 3x ‘folded optics’ lens design as seen in similar small profile cameras from Minolta and Sony. Just 0.8-inches thick, the AZ-1 also includes USB cradle and video-out capability, a 2.5-inch LCD display, and xD card support. Unfortunately, this slim-line is Japan only, for now.