E = m*c^2 is indeed a formula from relativity.
This formula did not exist before Albert Einstein introduced his special theory of relativity in 1905.
E = the total energy of a particle
m = the total relativistic mass of a particle
c = the speed of light = a constant of nature
Basically stated, that formula tells us that mass and energy are (in some sense) equivalent. That is, if we converted a particle of mass m into pure energy then the amount of energy we would get is E, as given by that formula.
To describe relativity I will simply repost a response that I gave to a similar question:
An introductory explanation of relativity is often done as follows:
1) Introduce the concept of a Galilean transformation,
2) Make it clear that in the Galilean view the speed of light is either infinite or is a different value for different observers.
3) Point out that if observers are moving at constant velocity then they do not feel the motion, and hence that it is natural for every such observer to claim that they are stationary and that others are moving (i.e. the basic notion of relativity within the Galilean picture),
4) Describe the Michelson-Morley experiment and why it is taken as evidence that the speed of light is seen as the same for all observers,
5) Introduce the fact that one would like to have the laws of physics look the same in all inertial (non-accelerating) frames of reference,
6) Point out that the laws of electromagnitism do not look the same in all inertial frames if the Galilean transformation is used,
7) Point out that there is an other kind of transformation law that makes the laws of electromagnetism look the same in all inertial frames (i.e. the Lorentz transformation),
8) Introduce the work of Einstein, in which he derived the transformation equations that would be required if the speed of light were the same for all observers, and as a result he found that the lorentz transformations were the correct ones. He also took the bold step of supposing that the Lorentz transformations could be applied to moving trains and other kinematic examples, not just the Maxwell equations of electromagnism.
9) Begin going through all sorts of examples that highlight the counterintuitive differences between special relativity and the Galilean picture.
10) Point out that one cannot, in certain circumstances, tell the difference between being stationary in a gravitational field and being accelerated through empty space with no gravitational field (e.g. accelerated with rocket thrust). Because of this, Einstein was led to suspect that there is a form of "equivalence" between accelerating frames and frames in a gravitational field, in a similar manner as the equivalence of frames that are in constant motion (described in step 3),
11) Introduce the idea that making space (and time) curve (like the wavy surface of a mini-golf green) would allow for transformation laws that make this new equivalence principle mathematically rigorous.
12) etc, etc, etc, ...
This is a long path towards a somewhat rigorous understanding of relativity, but for the purposes of answering this "Yahoo Answers" question it is unnecessary (and impossible, due to the lack of space). As an alternative to such a long process towards understanding I offer the following.
Consider the formula d=v*t, which can be used to describe the relationship between "distance travelled", "velocity of travel" and "time for travel" for any object that is moving with constant velocity. Imagine that two people, Alice and Bob, are both watching a spaceship go past and would like to apply d=vt to the spaceship. Also imagine that Alice judges Bob to me moving past her at speed U and that she sees the spaceship going past at speed Va. The classical (i.e. Galilean) way of thinking about the situation is that Bob must judge the spaceship to be moving past him at velocity:
Vb = U - Va
The Galilean way of thinking would also say that if Alice and Bob had clocks that were synchronized at some point in the past, then the clocks would always be synchronized and Alice and Bob would always agree upon what time it was (i.e. they need only have one common time variable 't'). As a result, Alice would apply d=vt as follows:
Da = Va*t
and Bob would apply it (from his point of view) as:
Db = Vb*t
Now, since Vb = U - Va we can combine Alice and Bobs formulas to get:
Db = Vb*t
Db = (U - Va)*t
Db = U*t - Va*t
Db = U*t - Da
That is, the distance that Bob judges the spaceship to have travelled in a given time t is shorter than the distance that Alice would judge the ship to have travelled.
To put another way, if two cars on a highway are going nearly the same speed (with Bob going 61 mph and Alice going 60 mph) then in one hour elapsed time, Bob will seem to Alice to have only gained 1 mile on Alice. However, to people on the ground Bob will appear to have gained 61 miles in that hour.
So the point of the galilean view of the formula d=vt is that 't' is constant for both Alice and Bob (and all observers, for that matter), and 'd' and 'v' are expected to differ between observers.
Now in special relativity we have, for a photon (a particle of light), that 'v' is constant for all observers, not 't'. Thus it must be that in d=vt we have that either all observers agree on 'd', 'v' AND 't', or we have a situation in which disagreement about the value of 'd' implies disagreement about the value of 't'.
So, to modify our example above slightly, let us imagine that Alice and Bob are watching a photon travel past instead of a spaceship. Then Alice will apply d=vt for the photon as follows:
Da = c*ta {where v=c is the speed of light}
and Bob will write:
Db = c*tb
In order to combine the two equations as we did above we cannot use the Galilean velocity formula Vb = U - Va, since Vb = Va = c.
There must be some other equation that connects what Alice sees to what Bob sees, and that equation (actually up to four equations) is the Lorentz transformation -- the heart of special relativity.
So, without going into further detail about the mathematics of the Lorentz transformation, the key point of this discussion is that there is a difference between how Galileo and Einstein would view the equation d=vt and the quantities d, v and t (when applied to a particle of light in this example):
Galileo: 't' is the same for all observers but 'd' and 'v=c' are not.
Relativity: 'v=c' is the same for all observers but 'd' and 't' are not.
In other words, relativity hinges upon the experimental discovery that the speed of light is the same for all observers. The fact that constant moving frames of reference were equivalent (in the sense that every observer would "feel" that they were stationary and claim that everyone else was moving) is not unique to relativity -- it is a property of equivalence that was recognized even by Galileo and had to be kept in the new transformation equations of Einstein. Had this equivalence not been part of the new transformation equations then these equations would not describe one of the most obvious features of objects moving past each other. So (at least in my opinion), special relativity involved preserving the equivalence of frames of reference from Galilean theory, while at the same time incorporating the fact that the speed of light is constant for all observers. One might think of the Galilean way of thinking as the OLD theory of relativity and the Einsteinian way of thinking as the NEW theory of relativity, though I do not recall any standard textbooks on relativity describing things in quite this way.
As for general relativity ... well ... I will have to discuss that in another "Yahoo Answers" forum question. There is just not enough room to discuss that here due to message length limits in "Yahoo Answers".
Is Einstein's theory of relativity still considered accurate?
Yes, his theories are still the most accurate that we have for gravitational calculations and motion calculations for anything larger than a micrometer. Smaller than a micrometer we begin to enter the realm of atomic and particle physics, and at that scale the theory of general relativity exhibits some incompatibilities with quantum mechanics. The theory of special relativity, however, is still an integral part of atomic and particle physics, since one has a special relativistic version of quantum mechanics. Kep in mind that Newtonian/Galilean mechanics is extremely accurate for most everyday speeds, and (as far as I know) even the calculations for sending the space shuttle into orbit or sending the Mars probes to Mars all involve Newtonian/Galilean calculations. The extra accuracy provided by relativity is not needed for most applications.
How did Einstein's theory impact science over the last 100 years?
Special relativity has become an integral part of every physical theory that might be used to describe fast moving objects or situations with strong gravity. In fact, there are a few notable examples of modern technology that would not work without the formulae of relativity. For example, in any large particle accelerator one must use special relativity to calculate the correct magnet strengths to keep the particles confined within the accelerator (e.g. CERN in Switzerland/France). As another example, the ultra precise timing that is required for satellites (with atomic clocks) to make the Global Positioning System possible requires not only special relativity, but general relativity as well. Without the correct calculations of general relativity the GPS system would simply not allow for precise locating to within a few meters on the Earth's surface.