Developer: Originate Labs
Price: free Download on the App Store
Unlike the paid Pano and Panorama apps, PanoLab is free, and allows for both vertical and horizontal panorama creations. Unlike Pano, PanoLab does not feature any blending or ghosting as a means of lining up pictures -- instead you take the pictures one at a time and then move them around to create a collage. However, this is also ultimately the strength of the application. As can be seen by the examples on the company blog, this free app can turn you into an amateur David Hockney, if you will invest the time.
PanoLab is an app I would have gladly paid for. As a giveaway, it's a no brainer.
Articles Relating to PanoLab : Pano vs. PanoLab