The app will auto-update.  Here are the release notes:

Scrollback

  • Works with PageUp/PageDown/Home/End.
  • Works with mouse gestures.
  • Looks great.

Better International Text Support

  • All characters from the ISO-8859-1 (Latin1 / Western Europe) standard are now supported.
  • You can use standard Mac OS X key combos for entering characters. (eg. add an acute accent by typing option+’e’ before a character).
  • Classic bitmap fonts have been updated to support ISO-8859-1.
  • UTF-8 is used internally for all data flow.
  • The LANG environment variable is now set based on the language settings in System Preferences.

Terminal

  • SSH no longer asks for passwords repeatedly. Cathode properly sets the SSH_AUTH_SOCK environment variable.
  • Bell sound can be disabled in the General Preferences.