Canon's Powershot G3 is the successor to its popular G2, which was one of the best 4megapixel digital cameras on the market.

The G3 enjoys many enhancements, but an increase in resolution isn't one of them. Instead Canon has decided that a new lens and image processor are the key to improved operation and picture quality.

The G3's new Digic chip is designed for image processing, and claims to increase quality and overall processing speed, with the added benefit of longer battery life.

The G3 has a 4x optical zoom, with a 35mm equivalent range of 35-140mm and bright focal ratio of f2.0/3.0, while the lens extends 2.5cm during the four second power-up.

The macro mode has been improved from 6cm to 5cm, and there's an optional close-up lens attachment along with wide and tele converters.

A maximum resolution of 2,272 x 1,704 pixels is sufficient for 11 x 8.5in inkjet prints at 200ppi, and the G3 offers three levels of jpeg compression (Exif 2.2-compliant) and three lower resolutions.

Using the default Fine compression at the highest resolution produces files measuring just over 1MB, but it's well worth selecting the Super Fine mode where 2MB files virtually eliminate compression artefacts.

A 32MB Compact Flash card is supplied and the G3's Type II slot is certified for use with the IBM Microdrive.

For better quality images, there's a Raw mode that takes the original 12bit CCD image data and compresses it to just under 4MB without harming the quality, which is a lot more manageable than storing huge 4megapixel (12MB) tifs. You'll need to use Canon's supplied software to process Raw files though.

The slightly redesigned body remains very angular and isn't the most comfortable to hold, although build quality and control positioning are superb. Joining the optical viewfinder is a flip-out and twist 1.8in colour screen which is great for tricky angles.

On the top is a fully-functional hotshoe for Canon EX Speedlight flashguns, and a comprehensive LCD status panel, while the built-in flash offers a number of modes including a rear-curtain option.

A new mode dial selects between auto, program, manual, aperture and shutter priority, along with two custom modes, three scene presets, movie capture and a stitch-assist mode, which helps shooting panoramas.

There are 46 shutter speeds from 15 seconds to 1/2,000 and 13 aperture settings. Sensitivity runs from 50 to 400 ISO.

A new feature is the intervalometer, which can shoot between two and 100 images at intervals from one to 60 minutes. There's also a new Neutral Density filter, useful for overly bright conditions, and a histogram display too, but sadly only during playback.

Image transfer is via USB with support for Picture Transfer Protocol, allowing driverless image downloads to Windows XP. There's direct connection to some Canon printers too and an AV output for TVs. Power comes from a rechargeable lithium-ion pack.

Enthusiasts will love the vast range of manual control, while beginners can get great results by selecting auto. The new optics are also very sharp and well corrected with virtually no colour fringing.

Canon's new technology also lives up to its claims. The enhanced scene analysis results in superb metering and focus, while the faster processing clears the buffer sufficiently quickly to store up to four images in (Fine) burst mode.

But perhaps most impressive of all are the clean images, with some of the cleanest images we've seen from a sub-£1,000 camera.

At £699, the G3 is up against tough competition. Prospective buyers should also consider Nikon's Coolpix 5000 and the new Olympus 5050, although the G3 is likely to be cheaper on the street.

Ultimately, Canon has improved on an already great camera, and proven that there's more to better picture quality than just fitting higher resolution chips.

DETAILS
Price: £699 (£594.89 ex VAT)
Contact: Canon 08705 143 723
www.canon.co.uk

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