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The new Sony Cyber-shot DSC-H3 will fit into Sony's H line right under the H7 and H9. The H3 offers a stabilized 10x optical zoom lens to capture 8.1 megapixel images and it has a 2.5 inch LCD. Compared to the 12x optical zoom H2, the H3 certainly looks like a step back, but Sony has also made the H3 much more compact (about half as thick as the H2). Look for the H3 in September for around $300.
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