You loop is doing exactly what you've told it to...
- Read a line of text and add it to
set1
- Read a line of text and check to see if it equals
"EXIT"
- Repeat as required...
So, every second request is being used to check for the exit state. Instead, you should assign the text from the input to a variable and use it to do you checks, for example...
do {
String text = input.nextLine();
if (!"EXIT".equals(text)) {
set1.add();
}
} while (!"EXIT".equals(text));
ps- Yes, I know, you could use break
;)