Slashdot put it out first, but really.. they never "report" stuff correctly.  But even New Scientist has the title wrong.  They are reporting that Sony and the University of Alabama have come up with a wide-angle camera that can image a 10-kilometer-square area from an altitude of 7.5 kilometers with a resolution better than 50 centimeters per pixel.

The camera could have military applications too, says the team. Mounted on the underside of an unmanned aerial vehicle, the gigapixel camera could provide almost real-time surveillance images of large areas for troops on the ground.