We've already heard some rumours about a new Canon 18-200mm lens with image stabilization and today the firm officially announced this new lens:
Canon has answered the call from advanced amateur photographers looking for a solid all-around lens with the introduction of the new EF-S 18-200mm f/3.5-5.6 IS zoom lens. With an incredible focal length range equivalent to 29-320mm in the 35mm format, the new EF-S 18-200mm lens will make an excellent addition to any camera bag, and it gives shooters a great lens to capture both standard as well as telephoto images. The new lens features Canon's built in Optical Image Stabilization system which gives the equivalent effect of a shutter speed roughly 4 steps faster, for better image clarity, even in shaky shooting conditions. With a minimum focusing distance of 0.45m/1.5 ft. at all zoom settings, this new lens should prove to be ideal for those situations where swapping lenses isn't an option.
The Canon EF-S 18-200mm f/3.5-5.6 IS lens will be available in October for $699.