Just to add to that a bit: that means that after you call the "forward" method in servlet 1, the code after that will indeed be executed. A lot of people seem to think that calling "forward" is like a GOTO statement, but of course it's just a Java method like all the others.
I don't know whether the code in servlet 2 will be executed before or after the code which comes after the "forward" in servlet 1, but I do know that both will be executed. (And I don't really care either -- if I did then the two servlets would be closely coupled and that would be a design problem.) And as Frits says, servlet 1 shouldn't do anything with the response after forwarding. However you're likely to want to do things like closing database connections after you forward to servlet 2.