If you're shooting video on a PEN without this device, you've no doubt noticed the noise of focus and aperture adjustments. There's just no getting around that with the internal mic - if you're serious about video, you really have to have this thing.
There's not much to it: an adapter that sits on your hot shoe and uses the accessory port to add a mic port. The included mic itself is a dramatic improvement on the internal E-P2 mic, but it's still basically a freebie; the real reason this item is so important is that you can use any mic you desire, and situate it away from the camera. The kit includes an extension cable, and you'll see an immediate reduction in background noise if you decide to use it.
In addition, there's also a little alligator clip which attaches to the extension cable, so you can attach the mic to e.g. a person's clothing.
This accessory shares an annoying quality with the Olympus VF-2 Electronic ViewFinder, which is that it blocks the hot shoe from other use. That means that you won't be able to mount a light or the aforementioned VF2 while using this device, so you'd better be happy with the rear LCD and off-camera lighting when you use it.
I'm docking it a star because of this, and because it's silly that you need to buy this unit at all. While it does get the job done, the price is too high for functionality that really should be included in the body itself.