They are using CSS3 for this, transform-attribute.
HTML
<a href="#" class="thumb">
<img src="http://y2graphic.com/templates/v2/images/hot/wallpaper.jpg" />
</a>
CSS
.thumb {
display: block;
height: 125px;
overflow: hidden;
position: relative;
width: 150px;
}
.thumb img {
height: 100%;
left: 0;
position: absolute;
top: 0;
transition: transform 0.5s ease 0s;
width: 100%;
z-index: -1;
}
.thumb:hover img {
transform: scale(1.2) rotate(5deg);
}
Here is a fiddle that demonstrates the above code!