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...allows developers to create Python programs running on Googles scalable, distributed server infrastructure. Plus, two new APIs will come to the App Engine, Google says: a server-side image manipulation API to crop, scale, rotate pics, as well as a caching layer to render pages faster.

Google also announced an expected pricing plan which they say will become effective later this year. To quote the numbers from their press release, which are additional to the free starter quota (500 MB storage and allegedly enough CPU and bandwidth for around 5 million page views/ month):

$0.10 - $0.12 per CPU core-hour
$0.15 - $0.18 per GB-month of storage
$0.11 - $0.13 per GB outgoing bandwidth
$0.09 - $0.11 per GB incoming bandwidth

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