Yeah because exception1 and exception2 are both checked exceptions and when you are catching a checked exception, there should be a statement in the try block which throws or declares that it throws that checked exception. I guess the explanation given by examlab is pretty much clears that point.
[ SCJP 6.0 - 90% ] , JSP, Servlets and Learning EJB.
Try out the programs using a TextEditor. Textpad - Java 6 api