Copied from the blog post announcing the release.
ModeShape now supports all the JCR 1.0 Level 1 and Level 2 features, plus the optional locking, versioning, and observation features. ModeShape also supports the required XPath query language, a simple search language, and the new JCR-SQL2 query language. ModeShape integrates with JAAS and web application security, or you can easily integrate it with other systems. ModeShape can use a variety of back-ends to store information (RDBMSes, Infinispandata grid, memory, JBoss Cache, JCR repositories), can access content in multiple systems (file systems, SVN repositories, JDBC metadata), can federate multiple stores and systems into a single JCR repository, or can access other systems using custom connectors. ModeShape is also able to automatically extract and store useful content from files you upload into the repository using its library of sequencers, making that information much more accessible and searchable than if it remains locked up inside the stored files. And ModeShape provides WebDAV and RESTful serversto allow various clients to access the content.
Congratulations to the fantastic ModeShape community - users and committers. You guys rock!