Steps to reproduce:
1. Create following java class:
public class main1 {
    
    /** Creates a new instance of main1 */
    public main1() {
        
    }
    public void init1(){
        try{
          throw new java.lang.Exception();
        }catch(Exception e){
          System.out.println("Exception caught");
        }
    }
    /**
     * @param args the command line arguments
     */
    public static void main(String[] args) {
       main1 a = new main1();
       a.init1();
    }
}
2. Compile it and add breakpoint to java.lang.Exception 
caught.
3. Start to debug main1 class.

Expected result: debugger should stopped on "Exception 
java.lang.Exception caught reached ..." 

Actual result: debugger stopped on following 
breakpoint: "Exception java.lang.ClassNotFoundException 
reached at line ? in class java.lang.ClassLoader by thread 
main."

Reproduced with S1S 4 update 1, build 021108.