How to: Use the Database Upgrade Tool (SQL Server Compact Edition)
The Microsoft SQL Server 2005 Compact Edition (SQL Server Compact Edition) Database Upgrade tool lets you upgrade a SQL Server Compact Edition 1.0 or 2.0 database to work with SQL Server 2005 Compact Edition. This command-line tool must run on the smart device, and both the source and destination databases must be located on the device.
To download and install the SQL Server Compact Edition Database Upgrade tool
The database upgrade tool is installed with Visual Studio 2005 as part of SqlMobile30DevTools[lang].msi file. The default location of the file is <drive>:\Program Files\Microsoft Visual Studio 8\SmartDevices\SDK\SQL Server\Mobile\v3.0\[platform]\[processor]\upgrade.exe.
Using ActiveSync, copy the upgrade.exe file to the My Device folder on the smart device.
Source: How to: Use the Database Upgrade Tool (SQL Server Compact Edition)