You can assign variables in the set clause of an update statement, in the same way you can assign them in a select statement. Using variables with update reduces lock contention and CPU consumption that can occur when extra select statements are used with update.
This example uses a declared variable to update the titles table:
declare @price money select @price = 0 update titles set total_sales = total_sales + 1, @price = price where title_id = "BU1032" select @price, total_sales from titles where title_id = "BU1032"
total_sales ------------------------ ----------- 19.99 4096 (1 row affected)