(Mac OSX): Can anyone explain why 'java --version' still produces java version "1.7.0_17" even though I've updated?

EDIT: Solved. Including this in case anyone runs into it. There are apparently two update mechanisms in OSX (1) From within System Preference->Java Control Panel and (2) By downloading the java file manually from Oracle.

I ran the update "1" from control panel and said system had been updated to U45, but command line didn't reflect that.

After manually downloading and installing JDK from Oracle command line now reflects "1.7.0_45".

I have no idea why this half-baked situation exist, but evidently its how it works....?