Quick: Yes. But you can store it for future use.
Long: Yes. The database update overwrites the database currently in use by the game. If you copy all of your db files and place them into a another directory (say your Football Manager directory in My Documents) and then install the update, you should be ok to replace the files in the db directory.
Guessing that your next question is something along the lines of 'Is there a tool which lets you combine databases', the answer is no.
And remember, make a backup of your db before making any major changes such as the one you're about to to. Oh, and please title your threads better in future. It doesn't hurt to include an explanation of your problem you know? For all I know, you could be a dogger out for his thrills or 'quickies'!
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