Yep. they announced it back in January, iirc. Awesome thing is that they're possibly implementing some of the Mass Effect 2 coding into it for the textures from what I remember. They already said they've completely fixed the issue and overhauled it in ME2, and they were going over it in ME. I just hope it's not some insane 1GB patch or something like The Witcher.
Some people on the Bioware forums are saying to just play the game and not to beat Illos because the DLC will take place after that part or something. But everything is pretty much speculation right now, and everyone is getting ready (if they haven't already) to toss the game out the window. I haven't gone past the first meeting with the Council in my current game I'm planning to play through when the DLC comes out just for this reason. But I have beat the game about 7 times already. I was still finding stuff out in the game like the pendant you get from the Asari Consort and what to do with it until my third playthrough, lol.
I've been picking at it a lot right now. Been trying to tweak the game so I can get the lovely 5.1 surround sound working wihout ALchemy. So far so good. I just wish Fraps would freakin record it without me having to switch the recording device from "What U Hear" back to Microphone every single time I want to use Skype/Mumble/Vent. And another thing is that even though The Witcher uses ALchemy as well, it's the same thing. Fraps just doesn't want to record the audio. Freakin' POS.