Where exactly did you hear that? Such rumors have been circulating around for quite a while, there was even a long discussion after some Pentax patent applications for lens designs, which exactly covered the m4/3 imager size. Some 17 F/2, if I recall correctly.

It was from a friend who claimed to know someone at Pentax, so take it for what it's worth. 

Yeah, second and third hand information generally isn't all that reliable. I thought I'd toss it out to see if anyone else here could corroborate. 

Just quickly googled this and maybe the "friend of a friend" is one of these guys:

http://www.mu-43.com/f66/rumor-pentax-considering-joining-micro-four-thirds-2352/

http://www.1001noisycameras.com/2010/04/pentax-seriously-considering-joining-micro-four-thirds.html

Or maybe I just got excited over an old rumour that's flaring up again. I'm a fairly recent convert to m4/3 after all. 

Dudes, it woud be awesome if they dusted off the Auto 110 and stuck a digital sensor in it.  I woudn't even care if they stuck a little LCD in the back  I would be happy to use a EVF for everything.  It would sweep the MILF market hands down.

It would be quite refreshing to see Pentax join up....

And they have lower prices - I still say Olympus M4/3ds cameras are overpriced.....E-PL1 should be around $425 USD & then progressively build up from that....

Their lenses are now about as expensive or more as Micro Four Thirds though. When Hoya bought them out the first thing they did was nearly double the price of all of their lenses.

Yes,
The lenses are quite expensive - which is why (in part) I haven't fully dived into M4/3'ds accessories.....If I'm going to fork over the $$ for an Olympus M4/3d lens, I just assume get another lens for my Nikon instead....

In some places, the E-PL1 is around $425, but I do get your point, especially after trying to convince someone why they should buy an $800 E-P2.