Panasonic LF1 has a
12.0MP 1/1.7-inch (7.44 x 5.58 mm ) sized CMOS sensor . On the other hand, Olympus 7030 has a
14.0MP 1/2.3-inch (6.08 x 4.56 mm ) sized CCD sensor and features TruePic III processor.
Below you can see the LF1 and 7030 sensor size comparison.
As seen above, Panasonic LF1 has a 1.5x Larger sensor area than Olympus 7030. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.