handler-case problem?

[millett@sbctri.sbc.com]

So when I enter this form I get this behavior:
? (handler-case (/ pi 0) (DIVISION-BY-ZERO (x) (print x)))
> Error: While compiling an anonymous function :
>        Error: "Can't divide by zero." 
>        signalled during compile-time evaluation of (/ 3.141592653589793 0) .
> Type Command-. to abort.
See the RestartsI menu item for further choices.
1 > (local 7)
#<DIVISION-BY-ZERO #x1924C49>
1 > (type-of (local 7))
DIVISION-BY-ZERO
1 > 
Aborted
? 

Am I doing something wrong or is handler-case used-up?
Thanks.