We are using ejb 2.1 to expose as a webservice using apache axis2.I have read in codebranch website that both are serverside components where in ejb can be run in more than one server unlike servlets..but I didn't get clear picture of difference.
2 Answers
Let me quote this old (but good) comparison.
Enterprise JavaBeans are components meant to encapsulate business logic. They do not handle presentation and have a precise set of restrictions they must obey. An EJB may not manage threads, access files with the java.io package, have a GUI, accept socket connections, or load native libraries. These restrictions are imposed because EJBs execute inside an EJB container, roughly analogous to the way servlets execute in a servlet container. Where servlets can be used to perform many arbitrary tasks, including the generation of HTML pages, EJBs are used almost entirely as business objects. A session bean represents a client for a session or transaction and an entity bean represents a persistent business object that is usually stored in a database. Unlike servlets, a single session bean may exist per client. A single servlet may serve many clients. A session bean usually mediates client access to entity beans, shielding the client from the details of managing state.

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I got exact answer Both are server side entities.EJB is designed by wrapping RMI API's.EJB is a service at Enterprise level.Main advantage that EJB can be a webservice which can deployed anywhere in the world.EJB is servicelayer enity which can even used by servlets.
We can have plain java in the service layer but differance that EJB has is it(EJB) can be alone deployed in any server unlike plain-java service layer.

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