Mysql DECLARE variable

Hi guys,
I want to assign a value to a field

I have done this by

declare totalreferences Int default 0;
select count(transref)
INTO totalreferences
from history
WHERE storenumber = 2 and
Brandnumber = 2

I get,
> syntax error on line 1 near, 'declare totalreferences Int default 0'

If I run the query with out the first line, I get
>Error, 'undeclared variable totalreferences'


What i think Im doing -
declaring totalreferences as an int with a default of 0;
then
selecting the count(transref) , INTO totalreferences
from history
WHERE storenumber = 2 and
Brandnumber = 2



1) can i only use DECLARE inside stored procedure.
2) can someone give me an example using maybe @totalreference if this is what i need

THanks for any help