Yes--they made it bigger. Samsung looked at the Galaxy Note it released last year, a smartphone with a ludicrously large 5.3-inch screen, and evidently decided that it just wasn't quite big enough. So they added a fifth of an inch to the screen, boosting the Galaxy Note a hair closer to tablet territory.
Don't worry: It still comes with a stylus.
Samsung revealed the Galaxy Note II at the 2012 IFA consumer electronics show. The list of upgraded parts reads about how you'd expect: under the hood the Galaxy Note has upgraded from a 1.4GHz dual-core processor to a new 1.6GHz quad-core Exynos, RAM's doubled from 1GB to 2GB, and the battery's been buffed up from 2500 mAh to 3100 mAh. For reference the Nexus 7 tablet draws its power from a 4325 mAh battery. The latest version of Android, 4.1 Jellybean, comes standard.
The Galaxy Note II borrows a new body design from the popular Galaxy S III, though you aren't likely to confuse the two thanks to the Note II's 5.55-inch screen. Strangely, Samsung has lowered the display's resolution in the process of enlarging it to 5.55 inches. While the original note ran a 1280x800 resolution, the Note II cuts back to 1280x720.
Samsung's legal team is currently scrambling to keep some of its phones on sale in the United States--a December 6 hearing will determine whether Apple wins an injunction to stop eight Samsung phones from being sold in the US. Good news for the Note II, though--Apple isn't out to get the original colossus or the Galaxy S III, so it should be in the clear.
The Verge got some hands-on time with the Galaxy Note II at IFA, so check out their video (featuring a wider and longer S Pen!) if you need confirmation that this thing is really, really big. Samsung isn't talking carriers yet, but expect HSPA+ and LTE versions of the phone(?) to hit in Q4 2012.