The class as well as Deloraine are in shock with the return of Sam Robinson but Rivers might be the last to know

Another face from the past Katerina is back in Australia and moves straight toward Rivers

Steve receives a revelation while visiting his biological mother And Katerina has declared war on Sam

Andrew Bell the new Hartley science teacher arrives and aims to push the students to their academic limits some even past that

Shakespeare is in the air as Rivers gets the chance to direct the classic Romeo and Juliet but with a Rivers twist

The school play causes tensions all around while worry and concern over Roberto's health consume the Bordino's household

A simple science project leads an unenthusiastic Matt from simple school work to corporate cover up

Rivers faces making a difficult decision when he learns that his father is back in town. Steve and Danielle get back together while working on his photography exhibit. As Matt and Jodie are breaking up, Con and Katerina begin a relationship.

Jodie's infatuation with singer/songerwriter Tim Beckett is shaken when the self-confessed alcoholic starts drinking again. Katerina convinces Deloraine to let her sell healthier food to the students but her upstart effort is challenged by competition from Con's hot dog stand. Andrew confronts Sam about her past affair with Peter and confesses his own jealousy. Allie feels like she's being shut out by her friends because of her involvement with Matt.

Tim gets Jodie a record deal but Con is left on the outside looking in when the company assigns her a new manager. Katerina pushes herself in preparation for her audition for a national dance company. Steve gets an opportunity to work at a local newspaper but his first assignment goes badly forcing his editor to use his damning pictures of Tim as part of a story on the fallen singer. As his friends fill out their university forms, Matt contemplates what he wants to do with his life. Rivers tries using Katerina to make Sam jealous.

A state-wide teachers strike, Con's parents leaving to attend a wedding, and Katerina's reluctance to be alone with Con all combine to provide the perfect opportunity for a pool party at the Bordino's. Rivers' attempt to liven up the party with a game of Truth or Dare results in hurt feelings, animosity, and conflicts among all those who participate. The gang hurries to clean up before Con's parents make their early return but only so much can be done to cover up the fact that your furniture has been in the pool!

Radio Hartley takes to the airwaves but when Con and Matt broadcast their signal over that of a commercial station to promote Jodie's struggling first single, Deloraine quickly pulls the plug on the fledgling operation. Katerina has difficulty telling Con how she feels about him. Andrew surprises Sam by first purchasing a motorcycle for himself and then proposing to her. Interest in Jodie's song increases as a result of the airplay and plans are made for her to go on a promotional tour. Allie is given the go ahead to move into the warehouse.

A decline in enrolment applications threatens to permanently close the doors of Hartley High unless the additional students can be found. Deloraine suffers has a mild heart attack and is admitted to hospital. Meanwhile, Sam turns down Andrew's proposal and soon finds herself back with Peter and the two run away together. The kids launch a campaign to save school and just when it appears they have failed, Jodie returns and delivers a passionate speech that pushes the campaign over the top.

Bolton costs Hartley the first round of a debating competition by agreeing with his opponent, a girl from St. Catherine's Girl School [Allie's former school] whom he has a crush on. Bolton asks Linda out on a date but after his dinner with her parents, they forbid Linda to see him again. Hartley wins the second debate on the strength of Bolton's inspired concluding argument on the topic of racism, but afterwards Linda tells him that she will be moving back to Taiwan with her family. Stassy's home life interferes with her school work. Katerina flirts with Internet dating.

New teacher Tom Summers, son of school Superintendent James Summers, arrives at Hartley as Dyson begins a programme to teach the girls auto mechanics and the boys cooking.

After Danielle discovers the body of her deceased neighbour, Danielle and Allie decide to volunteer their time to an organisation that provides companions for senior citizens.

Mr. Summers announces a new Creative Marketing Project which sees the kids pair up to create and market environmentally friendly products from their original ideas. While Matt and Bolton push their ""Bolton's Beads"", Danielle markets Declan's repackaged musical talents, while Katerina's perfume endeavour fizzles. Meanwhile, Stassy and Allie's project is threatened by Stassy's father's steadfast refusal to allow his daughter to work after school or go to the final presentations at the Shark Pool. Stassy goes behind her father's back to attend the presentations but when he finds out (her picture was in the newspaper), their heated argument culminates in Stassy leaving home.

It's the day of the school's cross country race. Tom's girlfriend, book editor Vicki Hodge, looks at Allie's work and asks her to skip the race so they can work on the book together.

Rocco returns from America (Con is doing well) and consults Roberto about the possibility of selling the Shark Pool.

Charlie approaches Matt to ask for his help in becoming ""cool"". After the make-over, the girls's fawn all over the ""new"" Charlie, and a superficial Katerina quickly changes her mind about the former nerd, and despite her failed attempt to change his personality as well, the predestined couple finally hook up. A former bandmate from Declan's days in ""Rapscallion"" arrives with an offer to cut him in on her impending record deal. Unfortunately, their fateful partnership falls apart when it is revealed that she is only interested in using his songwriting talents to further her struggling career. Bolton helps Stassy through her first runway modelling session and the pair succeed in bringing down the house, quite literally in fact. Afterwards, Stassy admits to Bolton that she never wanted to model but was only looking for a way to earn money, and when her financial assistance comes through, she is able to give it up.

Stassy enraptures Bolton with her new-found mysticism but only manages to enrage the Petty Tyrant that is Katerina with displays of her so-called psychic abilities.

Dyson announces that Allie has won the state literary fellowship but Allie decides to turn down the award after having just learned that she is pregnant.

Bolton surprises everyone when he wins the prestigious Henry Lawson poetry contest.

Bolton goes to great lengths to prevent the closing of his uncle's bowling alley but receives little help from his friends. Dani and Declan win the school elections and want no part in Bolton's plan to create a school bowling programme and instead, Declan proposes fencing as an alternative sport for the school. Katerina accuses Stassy of stealing a lottery ticket the group bought in hopes of giving the prize money to Bolton's uncle and challenges her to a dual during Declan's fencing exhibition. June sits in on Ronnie's blind date with Roger, a real ""blue algae"" of a guy. When Bolton learns from his uncle that the Hartley Council is taking money from a developer interested in redeveloping his uncle's property, Bolton informs Dyson who convinces Roger to obtain the evidence needed to reveal the Council's corruption and save the bowling alley. A 50's gala is held at the bowling alley to celebrate. Matt decides to move in with Stassy at the warehouse.

With his parents making plans to divorce, Charlie falls into the clutches of a cult, the ""Deliverance Movement"". Katerina asks Stassy for her help (she was very briefly involved with them) to get Charlie out, and along with Matt, Bolton, and Declan, they rescue Charlie from the cult's commune. Helen is irked by Roberto's laissez-faire attitude towards their impending 20th anniversary and petty jealousies about one another's coworkers only add to the Bordino's domestic dilemmas. Feeling squeezed out by Matt's arrival at the warehouse, Danielle asks Declan about the possibility of moving in with him and his mother. Declan turns her down stating that his mother would feel embarrassed but Danielle quickly realises that Declan is not telling her the truth.