EucalyptusEucalyptus gives easy access to over 20,000 classic English-language books of all kinds, and presents them in a beautiful, natural feeling, easy-to-use, book-like interface. Videos of Eucalyptus in action can be seen on the web.Unlike other reading applications on mobile devices, Eucalyptus features high quality typesetting routines on a par with those used in the traditional publishing industry. Combined with a simple interface, intuitive page-turning, and the industry-leading screen of the iPhone, the reading experience is second to none. Free from the distractions of the hardware, Eucalyptus makes it easy to lose yourself in the story.

A bit pricey at  AUD$12.99 but has better search functionality than Stanza.

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