There's no real way of handling it nicely. Once it happens you are in the unknown territory. You can tell by the name - OutOfMemoryError. And it is described as:
Thrown when
the Java Virtual Machine cannot allocate an object because it is out of
memory, and no more memory could be made available by the garbage
collector
Usually OutOfMemoryError indicates that there is something seriously wrong with the system/approach (and it's hard to point a particular operation that triggered it).
Quite often it has to do with ordinary running out of heapspace. Using the -verbosegc and mentioned earlier -XX:+HeapDumpOnOutOfMemoryError should help.
You can find a nice and concise summary of the problem at javaperformancetuning
