SAXParserFactory spf = SAXParserFactory.newInstance();
		spf.setNamespaceAware(true);
		spf.setFeature("http://apache.org/xml/features/scanner/notify-builtin-refs", true);
		
		SAXParser parser = spf.newSAXParser();
		XmlHandler handler = new XmlHandler();
		
		//Need this otherwise XmlHandler is treated as a standard DefaultHandler
		parser.setProperty ("http://xml.org/sax/properties/lexical-handler", handler);
		
		String xml = "<root>This is a &lt;test&gt;</root>";
		StringReader reader = new StringReader(xml);
		
		parser.parse(new InputSource(reader), handler);

private static class XmlHandler extends DefaultHandler2
	{
		@Override
		public void characters(char[] ch, int start, int length)
		throws SAXException 
		{
			System.out.println("Characters: " + new String(ch, start, length));
		}
 
		@Override
		public void endEntity(String name) throws SAXException 
		{
			System.out.println("end entity: " + name);
		}
 
		@Override
		public void startEntity(String name) throws SAXException 
		{
			System.out.println("start entity: " + name);
		}
	}