Layers 2 for iPhone Adds Smudge Tool, More announced the immediate availability of Layers 2.0 on Wednesday. The update for the painting application for iPhone and iPod touch users added a new Smudge tool and live brush previews.

Version 2.0 also added a redesigned tool palette, improved the photo import panel, fixed several bugs, and more. The application lets users draw on multiple layers, and can export images in JPG and Photoshop formats.

Layers 2.0 is priced at US$4.99 and is available at Apple's iTunes-based App Store.