public partial class Form1 : Form
{
    private BackgroundWorker backgroundWorker1;
    private testClass t1 = new testClass();

    public Form1()
    {
        InitializeComponent();

        // subscribe to your event
        t1.OnProgressUpdate += t1_OnProgressUpdate;
    }

    private void t1_OnProgressUpdate(int value)
    {
        // Its another thread so invoke back to UI thread
        base.Invoke((Action)delegate
        {
            label1.Text += Convert.ToString(value);
        });
    }

    private void backgroundWorker1_DoWork(object sender, DoWorkEventArgs e)
    {
        t1.changevalue(1000);
    }

    private void button1_Click_1(object sender, EventArgs e)
    {
        backgroundWorker1.RunWorkerAsync();
    }

}

class testClass
{
    public delegate void ProgressUpdate(int value);
    public event ProgressUpdate OnProgressUpdate;

    private int val;
    public int changevalue(int i)
    {
        for (int j = 0; j < 1000; j++)
        {
            val += i + j;

            // Fire the event
            if (OnProgressUpdate != null)
            {
                OnProgressUpdate(i);
            }
        }
        return val;
    }
}