Unsupported major.minor version 49.0

I have Development Server and NWDI server at EP7 Sp18

The java version on both the systems is we have java 1.4_2_18-b06

From my NWDS, if i directly deploy the application on the server it works fine, but if i use the Deirect Deployment option on NWDI, i get the following Error

java.lang.UnsupportedClassVersionError: bhi/com/comp/wdp/InternalResubPrnrReqComp (Unsupported major.minor version 49.0)

I am wondering if this is issue with my local java version on NWDS which is 1.4_2_17. But if that was the case, even direct deployment shouldn't work

Regards,

Nitin