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Yes.
This excerpt taken from the Kindle page at Amazon;
Improved, Built-In PDF Reader
Native PDF support allows you to carry and read all of your personal and professional documents on the go. With Amazon's Whispernet service, you can send your documents directly to your Kindle and read them anytime, anywhere. Now you can add notes and highlights, use the dictionary look-up, and read password-protected PDFs. You can also magnify PDFs by viewing them in landscape mode, and zoom into any area of a PDF up to 300% and pan to easily view small print and detailed tables and graphics. You also have the option to have your PDF document converted to the Kindle format so that it reflows.
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