You're doing a Thread.sleep() in the Swing main thread. This is NOT good practice. You need to use a SwingWorker thread at best.
What's happening is that it's running the first line, hitting Thread.sleep().
This prevents the (main) EDT thread from doing any of the repaints (as well as preventing the next line executing).
You should use a javax.swing.Timer to setup the delayed reaction and not put sleep() calls in the main thread.