The DSC-T1 is the first 'credit card style' digital cameras from Sony, it utilizes a folded-optics lens system (in the same manner as Minolta's DiMAGE X/Xi/Xt) which means that the optical zoom is mounted vertically in the camera body, it 'sees' through the final lens element by way of a 90 degree prism.
http://www.dpreview.com/news/0310/03102202sonydsct1.asp