Today Olympus announces the release of a firmware update for the XZ-1. Version 1.2 adds picture orientation: Horizontal/Vertical, to the camera menu. The camera will record which way the image was oriented when captured, so in playback, the orientation of an image can be rotated by using the control ring. The desired orientation is then saved in the Exif portion of the image file. Photographers can choose to turn this function on or leave it off.
To download and install this firmware update, simply launch Olympus [ib] software and connect the camera via USB cable to an internet connected computer. Choose the Update function from the Camera menu in the software and the update will be applied.