You can only use @Local if you call the ejb from a web application or another 
ejb. You are not doing that, you are calling it from a standalone client. And 
the IDE is hiding that fact from you, including setting the classpath. (This is 
one reason why every time I have to break in a new developer I have him, or 
her, do everything by hand with a basic text editor. Only after I am convinced 
that they know what they are doing and how things work and why they work that 
way will I let them use an IDE.)

The @EJB annotation is used to inject an EJB reference into the code. It is 
designed to work in both standalone clients and clients deployed to an app 
server. But as I pointed out earlier, it might not work in standalone clients 
in 4.2.x.

What tutorial or book are you using to learn EJB3?

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