Color is very good from the FZ40 up to ISO 400. Subjects appear natural, bright, and reasonably accurate. Plus, there are a number of ways to tweak your color results. Exposure is very good, too. White-balance presets are OK for the most part; however, the auto white balance is not good indoors. Unfortunately, you're stuck with that setting if you're using Intelligent Auto or most of the other automatic shooting modes. Whenever possible, use the presets or take a manual reading, which is really easy to do and you can store two presets.