"continue" is used to resume program execution at the end of the current loop body. If followed by a label, continue resumes execution at the end of the enclosing labeled loop body.
After the execution of "continue" statement, the control will be passed at the end of the LOOP. In this case the loop structure used is do-while, so it'll go at the and of the do-while loop and it will execute while statement. [ November 05, 2008: Message edited by: Vipul Prajapati ]