I would like to buy a Sony Cybershot DSC H5 digital camera. Can someone suggest if its worth the buy?

Also can someone tell me any other make which is nearere to the specification of the Sony DSCH5?

Well, firstly I think the H5 has very unusual styling...but if you like the look of it, then it might be ok for you.
Probably the closet camera in regards to specifications, would be the Canon S3 IS (my preference).
Here is a paragraph taken from the camera site, Steve's Digicams.
"If you're looking for a light-weight, stylish, moderately-priced digicam that is versatile enough to handle most family events while getting you close to sports action or wildlife, the SONY Cyber-shot H5 should be high on your list. You should also consider the Canon PowerShot S3 IS. Both cameras carry similar specifications and are capable of delivering high-quality images. The S3 IS advantages include better Continuous AF tracking of moving subjects, industry-leading movie mode, articulating LCD monitor, faster shutter speeds and greater continuous shooting speed and buffer depth. On the other hand, the H5 provides greater indoor flash range and AF-assist performance, a larger LCD monitor, lower image noise at high ISO settings, ISO 1000, Smart Digital Zoom, Multi Burst mode and an extra 1-megapixel of resolution".
So, out of the two cameras, it all comes down to choice.

goto www. consumerreports.org and check it out

this is the best site to get reviews for all the latest technology
http://www.cnet.com

IT is a pretty good camera. 7.2 megapixel that let you blown images 11 x 17 inches or more, it has a great great 12x zoom, and its own flash, so you are pretty well covered taking pictures.

Street price goes in the $380 to $500.