The Panasonic TZ1 introduces a 10X optical zoom lens in a compact camera as did the Nikon Coolpix S4 before it. Only Panasonic did it without all the poor image quality and poor ergonomics which put down the Nikon S4. Image quality is only average, mostly due to excessive image softness. Noise is high above ISO 200 but the Panasonic TZ1 has an effective image stabilization system which improves the chancesof using a low ISO setting. With such a compact 10X lens, some optical distortion and vignetting are an expected compromise. The only other serious problem of the TZ1 is a tendency to under-exposre which can be compensated using exposure compensation by aware users. This camera acheives very good magnification in macro mode without getting so physically close to the subject thanks to its clever semi-folded optics lens. In terms of features, the TZ1 is mostly missing manual controls which most good compact cameras all have.

For those looking for a compact ultra-zoom camera, the Panasonic TZ1 is currently the only worthy choice. Several compact cameras show superior image quality and feature set (obviously except for the long-zoom lens) including the excellent Canon Powershot A610, the excellent Canon Powershot A700, the Fuji Finepix E550 and the HP Photosmart R817. Note that most of these cameras are also substantially cheaper than the TZ1. In terms of optical zoom, the closest match is the 6X optical zoom Canon A700 which shows great image sharpness accross its zoom range, better ISO performance and 20% more resolution.