The McDonalds worry about Steve's whereabouts. Liz fears that the gang have got him and want the Police brought in. Alma is upset to find Ken has checked out of the hotel. Liz grows hysterical when Jim refuses to contact the Police and suffers stomach pains. Andy calls for an ambulance. Raquel is upset when Curly doesn't seem pleased to see her. Bet guesses that Vicky is at the Ardens' house. She finds Steve and her asleep at the house. They swear they didn't get up to anything. The ambulance takes twenty-five minutes to arrive for Liz. Raquel breaks down and tells Curly that she's finished with modelling and is homeless. Curly comforts her. Vicky tells Bet she knows she's been having an affair with Des Foster. Steve is appalled to discover he's caused Liz to go into premature labour. Bet tells Vicky that she wanted to make Alec jealous with Des but it backfired. She swears she wasn't unfaithful and Vicky believes her.

Andy makes Steve realise that he's been childish and selfish. Liz knows Katherine is dead before the doctor tells her. Liz tries to cry but can't manage it. Jim tells the twins that their sister is dead. Steve decides to got go to the police and tell them all he knows about the stolen radios. Jim tells him he should have sorted his priorities sooner. Deirdre is furious to discover that Mike has ruined Ken and Alma's relationship and Alma vows never to be humiliated again. Ken apologies to Alma. She tells him she doesn't care how he feels. He says he could have forgiven her for sleeping with anyone but Mike. She realises that his relationship with Mike was important to him than his relationship with her. Des tells Raquel she can move into his spare room.

Jack wants to take Raquel in a lodger,but Vera tells Jack she's not having Raquel living with them. Curly and Angieare put out that Des has offered Raquel a room. Curly accused Des of wantinghis wicked way with Raquel, not content with stealing Angie. Raquel witnessestheir row and Raquel moves in at No. 6 with Des. The nurses give Liz photographof Katherine for her to keep. It moves Jim to tears and he agrees not to takeout his anger on Steve. Bet gets jack to move Alec's wardrobe back into herroom and asks Vicky not to tell Alec about Des. Jim gets the twins to fill inthe extension trenches and Emily stores stock from the charity shop at No. 3.

Phyllis is astounded to find Raquel living with Des and Angie tells Raquel she's a calculating little cow and tells her she's wrecking her relationship with Des. Raquel assures Curly that she is not after Des. She asks him to defend her from Angie's wrath but he accuses her of stringing him along. Des tells Raquel he was never serious about Angie. He makes overtures toward her but she tells him she just wants a friendship with him. She agrees to pay him £20 a week. Jim brings Liz home from the hospital. Steve breaks down and has to be comforted by Liz. She refuses to let Steve blame himself, feeling it washerfault that Katherine died. Jim registers Katherine's birth and death. Alec returns home and Bet gives him a warm welcome, but Vicky is annoyed when Bet insists she return to school at the right time, as she wants to see more of Alec. Percy and Emily transfer all the shop stock to another shop and Deirdre and Ken receive their divorce papers.

Steve can't bring himself to attend Katherine's funeral and disappears.Jim is furious. Liz, Jim and Andy bury Katherine. Jim feels Steve has insulted the whole family, but Steve goes to the police station and tells everything he knows about he radios. Jim lays into Steve, but when Steve tells him he's given the police a statement he is even angrier; feeling the police will make a scapegoat of Steve. Liz is relieved that now they can begin to get on with their lives. Raquel is aware that her presence in the house is causing Des problemsas he finds her desirable. Angie overhears Phyllis talking about the way Raquel shows off her body around the house. Angie pours a pint over Des' head when he boasts women fall at his feet. Alec reprimands her so she resigns. Des and Raquel decide they don't care what people think about them and start kissing.Vicky tells Alec Bet really missed him and he should make it up t her. Bet is touched when Vicky kisses her before returning to school.

Bet tries to tell Alec about Des but he is too busy to listen.When Alec is insistent on employing Des, Bet tells him about her relationship with Des and Alec thinks she's been unfaithful. Bet is forced to show Alec the bruises Des gave her. Alec is stunned and believes that she had to defend herself. He wants to sort Des out but Bet begs him to leave it alone as she wants to forget it all. Sally tires to cheer Liz up but ends up crying over Katie's picture. Liz is touched when Jim buys her a frame for Katie's picture. He makes arrangements for a plaque at the crematorium. Bettabuys is short staffed. Reg wants to take Raquel on but Curly wants Angie to have the job. Des gets Alec to employ Raquel as a barmaid at the Rovers but she isn't too keen. Gail hears that a fast food take-away is going to open in the charity shop and worries about the competition.

Alma offers Gail the chance to buy her out but Gail has no money. Gail tells Mike he's tearing Alma apart. She begs him to leave Alma alone. She tells shim Alma is planning to sell up and asks him to stop her by telling her he will leave her alone. He says he can't leave her alone as he loves her. Gail tells Alma she can't let Mike drive her away from all her friends. Alma just wants to get as far away from Mike as possible. After contacting a private detective,Vera visits Detective Hastings and asks him to track down Andrea Clayton and her child, but she doesn't want Jack to know. Deirdre agrees to have a drink with Ken, as he's so lonely. Ken tells Deirdre about Alma sleeping with Mike. She feels sorry for both of them. Raquel stars work at the Rovers and Angie is furious that Raquel as taken her job. She tells her she can have the shoes off her feet as well and throws them at her.

Kevin asks Mike to let him handle Halliwell's contract when it comes up for renewal. Mike tells him he'll give him a bonus is he can get more money out of Halliwell. Kevin asks Halliwell to pay 10% more for a servicing contract. Halliwell tells him he'll give the firm's contract if Kevin giveshim a £1,000 backhanded. Kevin is stunned. Hastings finds out the Claytons moved to Accrington and then Edinburgh, so Vera gives him £100 to drive to Scotland. Deirdre is upset to hear Alma is leaving town to get away from Mike. Angie goes for an interview for a waitressing job at Romana's and is hired. She thanks Alec for sacking her. Gail warns Sally that their childminding arrangement may fall through if she has to sell the business and Raquel is embarrassed when Phyllis finds her earring in Des' bed.

Kevin can't believe Halliwell's cheek and tells Mike about the backhander. Mike tells him he wants him to deal with it as he says he can run the garage. Mike tells Kevin the best way to keep the contract is to put £25 on every service carried out for Halliwell's firm to pay the £1,000. Kevin doesn't like the deal as it is dishonest. Sally urges Kevin to stand by his conscience,but Kevin realises he's going to have to go along with Mike. After dismissing Derek's proposal, he is surprise at the report once he looks it over. He agrees that the company needs streamlining and redundancies. Derek is alarmed when Victor tells him he can see from the report that the company needs only one manager and that he has made himself redundant.

Alma calls in an estate agent. Gail is bitter that she has to sell up as well. Mike gives Alma the lease to the cafe to keep her in Weatherfield and she is stunned. Derek starts looking for a job. He is pleased that Victor is now out of his life for good, but soon Derek doesn't know what to do with himself. Derek feels that he's achieved nothing in his life. He begs Mavis to ask Victor for his job back. Mike gives Kevin £1,000 to give to Halliwell, but is disgusted with himself when he gives Halliwell the money. Steve is scared that he's going to Borstal but tells Liz he wants to be severely punished. Jack grows suspicious as Vera is working late and has no money. He begins to suspect that Vera has a lover and does some investigating of his own.

The McDonalds go to the Magistrates Court. Steve is charged with handling stolen good and pleads guilty. The magistrates fine Steve £100. He has to pay it off at £5 a week. Jim is furious to discover the case against the rest of the gang has been dropped. Gail is thrilled that Mike is no longer the landlord. Alma feels that it doesn't change anything - she is still moving on. Gail accuses Alma of not caring what happens to her or the cafe. Jack overhears Vera making arrangements to meet Hastings. Jack follows Vera to a pub where she meets Hastings. Jack warns Hastings off Vera so she has to introduce them. Hastings tells Vera the Claytons have moved to Exeter. Jack refuses to let Vera give Hastings anymore money thinking he's a conman.

Kevin realises he'll lose his job if he goes to the police and feels that Mike will deny any knowledge of the bribes if he tells the police. Derek plans to claim unfair dismissal, exposing Victor's harassment through lustful pursuits of Mavis. Mavis doesn't want to tell Derek that Victor spurned her, but she tells Derek she doesn't want their marriage put on public display. She persuades Derek that their marriage is worth more than Victor's money. Vera finds herself looking at all little boys, wondering if they're Paul. Alma can't understand Mike's motives in giving her the lease. Mike tells Alma he gave her the lease as he love her and asks her to marry him.

Sally confides in Gail about Kevin's trouble with Mike. Alma tells Gail and Audrey that mike has proposed. The both worry that he'll weaken her into accepting. Alma tells Mike that she can never love him again. To put her off Mike, Gail tells her about the way he's turned Kevin into a thief. Mike goes down on one knee and begs Alma to marry him. She tells him he hasn't changed at all; the Webster's story has made her see him for what he is. PPP demand Derek returns his company car, or buy it for £5,000. Derek wants to cash in the insurance policies to buy the car. Raquel gets a job modelling slippers but can't because her feet are too big.

Mavis makes Derek see they can't afford a car, but Derek tells Mavis they should persuade Rita to retire and take over the Kabin together.Mike reminds Kevin that he's the one that committed fraud and tell him to keep Sally's mouth shut. Terry visits the Duckworth's having heard they tried to track down Andrea. He asks Vera to forget all about the Claytons as he's got a new girlfriend and doesn't want her to know his past. He agrees to bring Lisa visiting. Vera warns Jack not to mention Terry's past when Lisa comes to visit. Ken's back goes again whilst teaching and Reg tries to get Rita to go out with him, but she tries to ignore him. Raquel's agency goes bust, owing her £500.She is upset, as she can't pay her way.

Derek is enthusiastic about buying the Kabin from Rita. However, Mavis isn't sure she'll want to sell, so to help the situation along Mavis and Derek throw a dinner party for Rita. Mavis and Derek try to broach the subject of retirement to Rita; she shocks them by telling them they should retire. Rita is outraged at Derek's suggestion of his buying the Kabin. Alma receives the cafe valuation and is upset, as it is so low. She realises that after buying Gail out and the solicitors fees she'll have nothing left. She suggests to Gail that she could move out and leave Gail to run the business. Gail is furious that Alma would let her look after the place single-handed. Kevin buys a double buggy for Sally, which thrills her and Ken refuses to let his back stop him from teaching.

Audrey finds Ken in his bed unable to move with his back and a pain in his leg. Ken is embarrassed, as he has no clothes on, but Deirdre helps him get dressed, where he is taken to hospital in an ambulance. Mavis and Derek apologise to Rita, which she enjoys because she knows she is in control of the Wiltons. Although through it all Rita begins to feel wary about he future. Terry brings Lisa to tea to meet his parents. Vera tries hard to impress Lisa and puts Jack on his best behaviour. Terry tries to keep Lisa away form everyone but Vera drags them to the Rovers. Vera guesses that Lisa is pregnant and when Lisa confirms it Vera is delighted. Martin tells Alma that Mike has won if she leaves town. He makes her see that Mike will track her down wherever she goes.He advises her to stay with her mates and fight Mike. She realises he's rightand tells Gail she's staying.

Vera tells Terry she's pleased for him about Lisa's baby. Jack tells him he's stupid and Lisa has set him up. Derek rings an old contact only to find he's been made redundant. Terry goes for Jack in the Rovers when Jack tells him Lisa will take his kid away like Andrea did. They fight and have to be separated by Alec. Jack advises Terry to ditch Lisa before she ditches him. Tracy persuades Deirdre to visit Ken in hospital. Terry and Lisa return to Blackpool. Vera tells Jack he's a louse for trying to put Terry off Lisa. Jack maintains he was protecting him. Ken is told by Doctor Wakeman that they need to take tests on his leg and he has to stay in hospital.

Alec gets a postcard from Cherie Watkins in Antigua. Bet demands to know who she is. Alec tells her that Cherie is related to a director of the shipping company and he tried to impress her. Bet is annoyed as Cherie thanks Alec for a wonderful time. Derek returns his car to Pendlebury Paper Products. Alec swears to Bet that he was not unfaithful. Ken has a mylogram. Alma visits him in hospital. He tells her that he's pleased she's not selling the cafe anymore. Whilst studying at the library, Andy meets Paula Maxwell. They are attracted to each other. Bet believes that Alec was faithful and rips up Cherie's postcard. Tracy tells Deirdre that they should take Ken in when he's discharged.

Ken is told he won't have to have an operation but will have to stay in bed for a while. Doctor Quinn refuses to discharge him unless he has someone to look after him at home. Emily suggests that he sleeps in her front room. Mavis begins to fear that they could lose the house if Derek doesn't find another job. Bet talks to Cherie Watkins when she phones up. She is furious when Cherie thinks that she is Alec's mother, as he told her that he was a widower. Bet attacks Alec with her handbag for telling Cherie she was dead. Tracy and Steve send bogus Valentine cards out. Andy is smitten with Paula Maxwell and puts a Valentine card in her bag. Derek realises that he's going to have to ask Angela Hawthorne for a job. Bet tells Alec that as his mother, she's invited Cherie to tea. Deirdre tells Ken that he can't expect Emily to look after him so he'd better come to her and Tracy.

Steve receives a Valentine from Vicky in Lancaster. Deirdre sets up a bed in the living room for Ken. Alf is sent a Valentine from 'Britannia' (Steve and Tracy). Audrey pretends to be furious and consoles herself by going shopping.

The Kabin is broken into at 4am. Don sees the robbers and chases them in his cab. Mavis recognises the alarm and rushes to the Kabin to check on Rita whilst Derek phones the police.

Steve tries to find out who Andy is going out with. Jack asks Don to get him a job pall bearing. Deirdre sets Percy and Phyllis up to vist Ken to stop him getting too cosy.

Jack interrogates Ken for details of his bad back for future reference. Ken and Deirdre open their decree absolutes together. They tell Tracy they are now officially divorced. Steve follows Andy when he meets Paula.

Steve is fed up that he has to pay £20 a week rent whilst Andy lives at home free. Tracy is sick of her parent's civilised attitude towards the divorce. Derek spends his day cooking for Ted Sullivan

Rita has a security roller fitted on the Kabin door. Mavis tells Rita it's obvious that Ted fancies her. Raquel gets a job demonstrating microwave popcorn. She asks Jack to make up an excuse for her to tell Alec.