A year on from the Olympus E-410 comes the company's new entry-level model, the E-420.

Initially, the two 10-megapixel digital SLRs look identical, save for a raised ridge on the E-420’s grip, which affords a firmer hold on the camera. The lack of any true grip on its equally compact predecessor was disappointing, so this is a step forward.

Turn the camera on and you’re ready to shoot in a second. At the back the E-420 has a 2.7in screen, up from the 2.5in of its predecessor, though resolution remains the same so you won't see any more detail.

Dual memory slots – it can accept both Compactflash and XD cards – are still there, as is Live View, which allows the rear screen to be used for composing shots, rather like you’d find on a compact camera (it's not something normally found on digital SLR cameras, which typically only use the screen for reviewing shots).

The camera, when it's switched on, shakes its sensor free of any dust that has intruded (while changing lenses, for instance), but there’s still no built-in image stabilisation to counteract wobbling hands and avoid blurred images when shooting in low light (the higher-up E-520 has that).

A new processor – the brains of the camera - in the E-420 does allows a faster shooting speed of 3.5 frames per second, and Shadow Adjustment Technology (SAT for short) now automatically adjusts tricky exposures so that detail in both light and shade is maintained.

Despite the busy control layout, the E-420 is surprisingly easy to use. Light sensitivity is limited to a maximum of ISO1600, but whereas many rivals would display a destructive amount of image grain at this setting, the E-420 delivers relatively clear shots. Colours are realistic too, with the option to add punch with a Vivid setting.

Mysteriously though, the E-420 has lost two scene modes – the function whereby the camera automatically adjusts its settings depending on the subject you’ve told it you’re shooting – but since these were for shooting underwater, most users won’t grumble.

Incidentally, in tandem with the E-420 comes a new compact 50mm-equivalent portrait lens, its ‘pancake’ construction further helping to reduce the size and weight of this DSLR when you’re on the move.

Vista compatible: Yes