Canon is adding another model to its entry-level D-SLR series — the EOS 1000D/Rebel XS, whose release has been rumored on various technology blogs.

The new camera, announced Monday, includes a few improvements by the EOS Rebel XT, which it replaces, such as a 2.5-inch CMOS LCD, an increase to 10.1 megapixels, and the Live View feature. Live View enables a user to shoot through the LCD screen rather than through an optical viewfinder.

Seven-Point Autofocus System

In addition, the XS features a new Digic III processor with 12-bit processing, better battery life, a seven-point autofocus system, and an unlimited burst rate of three fps. An image-stabilization lens, the EF-S 18-55mm f/3.5-5.6 IS lens, is included and can reduce image blur.

The four-stop image stabilization is designed to offer excellent performance, according to the company, even under low-light conditions. The new model is compatible with SD and SDHC memory cards, and is fully compatible with all Canon

EF and EF-S lenses and EX-series Speedlites. The XTi actually had a nine-point autofocus system, but Canon said the seven-point system provides significant cost savings.

Included in the new model is the E-TTL II, the company’s distance-linked flash exposure system. The LCD screen has a tab-based menu system to avoid scrolling, and there is direct control from the menu by external devices like flash units. An Auto Lighting Optimizer can exact brightness and contrast, such as improving skin tones by providing exact exposure for faces.

Main Competitor is Nikon D60

The XS was announced in Japan, and the U.S. launch is expected in July. No pricing has yet been established, although there have been reports it would be in the same ballpark as for the Rebel XTi, another model that the XS replaces. The XTi goes for $630 to $740.

The XS, similar to other Canon entry-level D-SLRs, will be…

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