Just like we expected, Apple has released a new software update that removes the Flashback trojan and disables automatic execution of Java applets.
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.
You can install the update by selecting Software Update from the Apple menu at the top left of your screen.