binary out

bit2 = (pot>>1 & 0x01);

Tweaked.. Can you explain to me what this line of code does? I get that each line comes up with the binary bit for each pin, but I don't understand what is happening. Also, I have never seen or needed hex in code before. I get that it is base 16 which is a nice multiple of 8(binary byte). But why do we use it like this? Thanks for any knowledge you may offer.

[edit]Also, wrong forum topic.[/edit]

pat