Caret in argument list c++

So I found this in the MSDN libs:

void Form1_KeyPress(Object^ sender, KeyPressEventArgs^ e)

what do the carets mean in an argument list? Is it some sort of explicit pass-by-value? I've never seen it before.

I'm open to suggestions if there's an easier way.
use factor. it will make you write better code.
or use c#. it's got lots of nice things like lambdas and generators and it'll run almost anywhere. and .net is a lot better than win32.