First things first. All objects are basically created in new <Class_Name>()
Now coming to your point it is the initialization. In case
You create a new object and then store the reference to the newly created object, there by initializing var_name.
But in cases where the initialization may happen based on certain runtime conditions.
Hope this makes your understanding clear.
[ June 27, 2007: Message edited by: Pradeep Kadambar ]