Looking at how Canon and Nikon's cameras are selling now, we could be forgiven for forgetting that the first digital Canon and Nikon branded cameras were created by Kodak welding the digital electronics onto top-of-the-line bodies. Most of the digital camera companies that have made good digital cameras had a history of making good film cameras: Canon, Nikon, Olympus, Pentax, Konica and Minolta. (Casio being an odd-man out, but has tended to target the compact point-and-shoot market.) Many of these camera companies at least started by sourcing the heart of their digital system, the imaging sensor, from an electronics firm (often Sony, sometimes Kodak or Fuji). Panasonic and Leica looked at the on-going dance and realized they could help each other.
Panasonic and Leica have entered into a cross-development/cross-branding partnership, where each will release digital cameras based on common platforms, with Panasonic handling the electronics and Leica handling the optics. If it sounds like two super powers coming together for good, the Lumix DMC-FZ20 might not surprise you. The $500, 5MP camera sports a 12x zoom lens, constant f/2.8 throughout, and with optical image stabilization making this an extremely versatile bridge camera. It supports ISO 80 through 400 (and auto), but has noticeable noise in the upper half of those ranges. Reviews have indicated that there is very little distortion from normal to telephoto, and auto focus is generally good with some specific issues.