is a lisp syntax front-end to the Erlang compiler. Code produced with it is compatible with “normal” Erlang code.
The really big change with this release is that
LFE is now Lisp-2 like Common Lisp, i.e. functions and variables reside in different name spaces, instead being a Lisp-1 like Scheme where they reside in the same name space.
(via PLNews)