Apple Releases Java Update to Remove Flashback Malware
Apple just released Java for OS X 2012-003, an update to the Java implementation in OS X. The update removes "the most common variants of the Flashback malware." Interestingly the update disables the automatic execution of Java applets, and, if automatic execution is re-enabled, will again disable it if no applets have been run for "an extended period of time".
It was reported earlier this week that Apple was in the process of creating software to remove Flashback. It's been claimed that the Flashback malware infected more than 600,000 Macs at its peak, though there have been a number of programs created to quickly and easily cleanse infected machines.

This Java security update removes the most common variants of the Flashback malware.
This update also configures the Java web plug-in to disable the automatic execution of Java applets. Users may re-enable automatic execution of Java applets using the Java Preferences application. If the Java web plug-in detects that no applets have been run for an extended period of time it will again disable Java applets.
This update is recommended for all Mac users with Java installed.
For details about this update see: http://support.apple.com/kb/HT5242
The update can be downloaded via Software Update. A separate Java for Mac OS X 10.6 Update 8 is available for users on Mac OS X Snow Leopard.
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