* Finally a universal binary! (Well, at least I beat Photoshop out the door.)
* However, Xee now requires Mac OS X 10.4. Users of 10.3 can still use Xee 1.2.1.
* Smoother display of scaled-down images, using the graphics hardware.
* Support for EXIF data.
* Rotation and cropping for all image types, with lossless saving for JPEGs, even when cropped. However, JPEGs are no longer automatically saved when rotating - use the menu option or Command-S to save.
* Tracks changes to the filesystem and updates file lists accordingly.
* Can sort images by name, date or size, and sorts in the same order as the Finder by default.
* Slideshow support.
* Support for Maya IFF images.
* Many interface tweaks.
* Massive internal rewrites, fixing lots of bugs, and hopefully not introducing too many new ones.