Java socket programming -- Socket Times out before connection gets complete

I have a socket programming code that goes..

Server Program

import java.net.*;
import java.io.*;

public class GreetingServer extends Thread
{
private static int port;
  private ServerSocket serverSocket;

  public GreetingServer(int port) throws IOException
   {
  serverSocket = new ServerSocket(port);
  serverSocket.setSoTimeout(50000);
   }

 public void run()
  {
     while(true)
     {
        try
         {
           System.out.println("Waiting for client on port " +
           serverSocket.getLocalPort() + "...");
           Socket server = serverSocket.accept();
           System.out.println("Just connected to "
                + server.getRemoteSocketAddress());
           DataInputStream in =
              new DataInputStream(server.getInputStream());
           System.out.println(in.readUTF());
           DataOutputStream out =
             new DataOutputStream(server.getOutputStream());
            out.writeUTF("Thank you for connecting to "
             + server.getLocalSocketAddress() + "\nGoodbye!");
        server.close();
     }catch(SocketTimeoutException s)
     {
        System.out.println("Socket timed out!");
        break;
     }catch(IOException e)
     {
        e.printStackTrace();
        break;
       }
    }
 }
     public static void main(String [] args)
     {
       port=9000;
       try
     {
       Thread t = new GreetingServer(port);
       t.start();
     }catch(IOException e)
    {
      e.printStackTrace();
    }
   }
 }

And the client side code that is...

import java.io.*;
import java.net.*;
public class GreetingClient
 {
   private static String serverName;
   public static void main(String [] args)
    {
      String sName = "MyServerName";
      int port = 9000;
      try
       {
        System.out.println("Connecting to " + sName
                         + " on port " + port);
     Socket client = new Socket(sName, port);
     System.out.println("Just connected to "
                  + client.getRemoteSocketAddress());
     OutputStream outToServer = client.getOutputStream();
     DataOutputStream out =
                   new DataOutputStream(outToServer);

     out.writeUTF("Hello from "
                  + client.getLocalSocketAddress());
     InputStream inFromServer = client.getInputStream();
     DataInputStream in =
                    new DataInputStream(inFromServer);
     System.out.println("Server says " + in.readUTF());
     client.close();
  }catch(IOException e)
    {
    }
  }
 }

The code compiles fine. But when i run the program, first the server and then the client, the server displays that

Waiting for client on port 9000...
Socket timed out!

and the client shows

Connecting to MyServerName on port 9000

What is wrong with the code?? I have tried increasing and decreasing the timeout values but it gives the same output.