Apple Digital AV Adapter feature:

Use the Apple Digital AV Adapter to mirror whatever’s on your iPad 2 screen — apps, presentations, websites, and more — on your HDTV or HDMI-compatible display in up to 1080p HD (movies play at up to 720p).
Watch slideshows and movies on the big screen in up to 720p by connecting your iPad, iPhone 4, or iPod touch (4th generation) to an HDTV or HDMI-compatible display.

A second 30-pin connector built into the AV adapter lets you charge and sync your device while it’s connected to your HDMI-compatible display

The Apple Digital AV Adapter will let you share the wonders of your tablet to everyone in the room. Using the adapter, you can connect your widescreen TV, video projection screen or a device which is HDMI-compatible to your tablet.

Aside from connection to the iPad 2, the Apple Digital AV Adapter also supports HDMI video out for iPad, iPhone 4, and iPod touch (4th generation)! Great innovation!