The line you quote is the assignment.
As Brian said, it's only in scope for the current process.
When you run a script (say with ./<script> or bash <script>), a new shell is created in which the script is executed. As such, once the script finishes and you're returned to the prompt, all the variables assigned in the script will be undefined.
The exception to this is of course if you execute the script in the current shell, say by executing it with . <script> or source <script> (see your shell's manual for more details).
You can experiment with this on the prompt:
$ FOO=bar
$ if [ $FOO ]; then echo "FOO defined"; else echo "FOO undefined"; fi
FOO defined
$ echo $FOO
bar
$ unset FOO
$if [ $FOO ]; then echo "FOO defined"; else echo "FOO undefined"; fi
FOO undefined
$ echo $FOO
$ echo 'FOO=bar' > temp
$ . temp
$ echo $FOO
bar
$ unset FOO
$ bash temp
$ echo $FOO
$
As for the actual content and purpose of the variable in your script, I think Brian and others answer this excellently.