Embedding Somthing in FlashDevelop

Hi,

i wanted to ask, when using FlashDevelop to embed images in a class, the code lines,

public class MyClass extends Sprite
{
[Embed(source=’…/lib/lancer_evo_bitmaps.jpg’)]
private var _imgClass:Class;
private var _image:Bitmap = new _imgClass();

What would the last 2 lines represent? and how does FlashDevelop know that it refers to the jpg image?

Thanks