Reinhard confides in Hildegard that his memories of Kircheis motivated him towards ceasefire talks. Yang discusses the situation with his staff. The death of Fischer basically cut off the legs from Yang's fleet. Yang decides to accept the ceasefire talks. Yang leaves Iserlohn with minimal military personnel and the politicians from El Facil. Fork's ship finds Yang's ship en route to the Imperial fleet. Behind Fork two Imperial destroyers fire on Fork, killing him. Back on Iserlohn, the crew receives word of an assassination attempt by Fork. The Imperial ships requests a meeting with Yang. The crew behind the ships are in reality Earth Cultists in disguise. Patrichev and many others are killed defending Yang. Schenkopp with his Rosen Ritter arrive on Yang's ship. Yang is shot in the leg.

Paul von Oberstein, chief of staff of the Iserlohn fleet, is in trouble. He saw through Yang's plan, but his commander didn't listen to him, and he fled before the destruction of the fleet. The three chiefs of the Imperial fleet resign, but want to make him responsible of the defeat. Oberstein meets Reinhard and explains how, like him, he hates the high nobles and the Goldenbaum dynasty, and offer his help. Reinhard agrees and obtains his pardon by advising the Emperor to refuse the chiefs' resignations.

Thirty years ago, marquis Klopstock was exiled form the imperial court. He asks prince Braunschweig, the Emperor's son-in-law, to ask forgiveness on his behalf. Braunschweig invites him to his daughter's birthday party. Klopstock's real goal is to bring a bomb in order to kill the Emperor, who will be there. At the party, Reinhard clashes with baron Flegel. The bomb is taken away by accident and makes little damage. Klopstock commits suicide and all the incident is kept secret.

Yang is sent to Thernussen (Heinessen's second largest city) with his ward, Julian Minci, to attend a ceremony at the Military Academy. He meets Jessica Edwards, who is campaigning for the Peace Party candidate in an upcoming election. We learn that Yang, while being loyal to democracy, has no love for the current politicians. The P.K.C. sets a bomb in the Peace Party's headquarters, killing the candidate, but their plan backfires when Jessica, who is the new Peace Party candidate, wins a landslide victory.

End of the battle of Amlitzer: Yang's 13th Fleet keeps the Imperial Fleet at bay, allowing admiral Bucock to withdraw the remaining fleets. After that, Yang manages to escape destruction (once again). Meanwhile, the Emperor dies without appointing an heir. Reinhard teams up with premier Lichtenlade in order to crown Erwin Josef II, one of the late emperor's three grandchildren. Prince Braunschweig and marquis Littenheim, fathers of the two others, prepare to seek revenge. Back in the Free Planets Alliance, Trüniht is appointed temporary chairman of the High Council, Bucock commander-in-chief of the Fleet, and Yang commander of Iserlohn. he takes all his staff with him, plus Attenborough and a new officer, Julian Minci, and hopes to have Alex Cazellnu appointed as commissioner of the fortress. Meanwhile, in Phezzan, Rubinsky takes his orders from the Grand Bishop of the Earth Cult.

Julian Minci asks Frederica Greenhill how Yang became the "Hero of El Facil": 9 years ago. The Free Planets Alliance fleet, led by Arthur Lynch, fled the approaching Imperial Fleet, leaving 3 million people behind; Yang, one of the few officers left, organized the evacuation while the Alliance Fleet was defeated. Meanwhile, in the Empire, Reinhard thinks a civil war is about to break out; in order to avoid an intervention form the Alliance, he decides to infiltrate Lynch in the Alliance to stage a military coup. The move is hidden behind an exchange of 2 million prisoners of war. End of 796 S.C. / 487 I.C.

Prince Brauschweig and marquis Littenheim team up to overthrow the young Emperor and get rid of Reinhard. Count Franz von Mariendorf wants to join the conspiracy, but his daughter, Hildegard persuade him not to do so because a new order is rising under Reinhard. She goes to Reinhard and offer her family's allegiance. The high nobles create the Lippstadt League, led by Braunschweig and Littenheim; admiral von Merkatz agrees (although reluctantly) to command their military forces. April, 6, 797 S.C. / 488 I.C.: Reinhard strikes first and manages to arrest many conspirators, but Brauschweig and Littenheim flee and regroup most of their forces in the Geiesburg Fortress.

The Free Planets Alliance fleet has conquered more than 200 star systems (50 million inhabitants) without fighting. In Iserlohn, vice-admiral Alex Cazellnu drafts a supply plan, but he is worried about such a heavy burden: for him, Reinhard clearly wants the Free Planets Alliance to exhaust its resources on behalf of the liberated planets. The supply fleet is destroyed by Kircheis because Fork didn't think such an attack was possible. Yang, fearing a scorched earth policy, convinces his fellow fleet commanders to ask for a withdrawal. Riots break out on many planets because of the food shortage and the looting of the soldiers. Fork experiences a case of hysterical blindness in the face of his plan's failure. In Phezzan, Rubinsky grants a new loan to the Free Planets Alliance to maintain the balance: he hopes to economically control both the Empire and the Alliance. October, 10, 796 S.C. / 487 I.C.: Reinhard orders to launch the counterattack.

A new admiralty is created for Reinhard. He chooses commoners and lesser nobles to command his fleets: August Samuel Wahlen, Cornelius Lutz, Karl Gustav Kempf, Fritz Josef Bittenfeld, Ernest Mecklinger, Wolfgang Mittermeyer and Oskar von Reuenthal. Meanwhile, Maximilian von Kastrop has rebelled against the Empire. He thinks he is safe because of the "Artemis Necklace", a system of powerfully armed satellites built with the help of Phezzan. Reinhard sends a fleet under Kircheis' command to put an end to the rebellion. He manages to destroy the necklace. Kastrop is killed by his retainers and is the only casualty of the operation.

Yang decides to take Iserlohn by a ruse. The Rosen Ritter (Knights of the rose), a ground combat unit made of Imperial exiles, will pose as an imperial crew and infiltrate the fortress. Yang's staff is introduced: Murai, Patrichev, Fischer (a master of fleet maneuvers) and Frederica Greenhill, daughter of admiral Dwight Greenhill. The Iserlohn fleet is lured away from the fortress by decoys. When a damaged imperial spaceship asks for help, the commander of Iserlohn, who doesn't know where his fleet is due to radar jamming, authorizes it to dock...

May, 14, 796 S.C. / 487 I.C.: a fake imperial spaceship docks into Iserlohn. Walter von Schenkopp, commander of the Rosen Ritter, pretends to have important information and takes control of the center of command. The Iserlohn fleet comes back, only to be destroyed by the fortress' main weapon, the "Thor's Hammer". The fall of Iserlohn dramatically changes the strategic balance: Yang hopes it will lead to a peace treaty. Back in Heinessen, he wants to resign, but is promoted to vice-admiral instead.

In the Free Planets Alliance, the capture of Iserlohn has intoxicated the public, the military and the politicians. It is possible to invade the Empire from Iserlohn, and many people think it's time to conclude the crusade against tyranny. In the High Council, Joan Lebello (Secretary of Treasure) and Hwan Lewi (Secretary of Human Resources) think it's better to sign a peace treaty because the economy in on the verge of collapsing, but the Chairman explains that they will lose the next election unless they achieve a substantial military victory, so the High Council decides to invade the Empire; only Trüniht sides with Lebello and Lewi. The invasion plan is drafted by commodore Andrew Fork, an ambitious man so sure of the righteousness of the war that he discards any objections, especially those made by Yang, as siding with the enemy. The Free Planet Alliance will send a force of 8 fleets, 30 million men and 200 000 spaceships under the command of admiral Lazar Lobos, with admiral Greenhill as second-in-command. Meanwhile, in Phezzan, Rubinsky warns the Imperial High Commissioner that the Free Planets Alliance is planning a full scale invasion of the Empire.

August, 22, 796 S.C. /487 I.C.: the invasion of the Empire has begun. Reinhard implements a scorched earth strategy: all food is taken from the frontier zone, so the "Liberation force" of the Free Planets Alliance will be forced to feed the inhabitants. Reinhard plans to attack the invading fleets when their supply lines will be overstretched. Commodore Ulrich Kesler carries out the orders but, in the process, has to face someone from his past.

The Free Planets Alliance fleet are attacked: the 3rd, 7th and 12th fleets are destroyed and the 5th, 8th, 9th and 10th fleets are heavily damaged; only the 13th Fleet has managed to escape without taking too much damage. Admiral Lobos orders the fleets to regroup in the Amlitzer Starzone. Reinhard orders his admirals to regroup in the same area in order to destroy the remaining fleets. The Free Planets Alliance Fleet suffer further losses during the battle of Amlitzer Starzone (October, 15, 796 S.C. / 487 I.C.).

In Heinessen (capital planet of the Free Planets Alliance), a memorial for the soldiers who died at the battle of Astarte is held. The warmongering speech of Job Trüniht, the Secretary of Defence, is interrupted by Jessica Edwards, whose fiancé was killed in the battle: she asks him why the advocates of war always sacrifice the lives of others while hiding in safer places. While going home, she is attacked by members of the Patriotic Knights Corps (P.K.C.), a nationalistic organization secretly led by Trüniht. She is rescued by her friends Yang and Dusty Attenborough and barely escapes death. The next day, Yang is promoted to rear admiral in command of the newly formed 13th Fleet. His mission: to take the Iserlohn fortress, a powerful space station which has repelled every attack.

In Odin (capital planet of the Galactic Empire), Reinhard is promoted to imperial admiral after his victory at Astarte. With his friend Siegfried Kircheis, he pays a visit to his elder sister Annerose, the Emperor's favorite. In a flashback, Kircheis remember how he and Reinhard became friends, how Annerose was taken away from her home to be the Emperor's favorite and how they came to hate the high nobles and the Goldenbaum dynasty.

January 1, 796 S.C. / 487 I.C.: in the Astarte star system, a 20 000 spaceships Imperial fleet under Reinhard von Lohengramm's command is about to be cornered by three Alliance fleets of 13 000 spaceships each. Against the advice of his subordinates, Reinhard decides to strike first in order to defeat each fleet before they can join. The Allied commanders, trusting the overall odds of 2 to 1, don't anticipate this and rebuff Yang Wen-li's advice to quickly regroup their forces.

After the destruction of the 4th and 6th fleets, Reinhard's fleet engages the 2nd Fleet. When its commander is wounded, Yang takes command and manages to escape utter destruction. In Phezzan, Adrian Rubinsky, administrator of the planet, and Nikola Boltik, his main adviser, make comments on the battle and note that it won't change the strategic situation.

Susanna von Benemünde, a former favorite of the Emperor, wants to get rid of Annerose and win back the Emperor's love. She teams up with Flegel, who hopes that a scandal involving Annerose will lead to Reinhard's downfall. Annerose is abducted: she is to be killed and found with a supposed lover from the lower class. She is rescued by Kircheis, Reuenthal, Mittermeyer and Oberstein. Benemünde is forced to commit suicide. Flegel has been smart enough to leave no proof of his involvement, but Oberstein and Reinhard suspect him anyway.

Andrew Fork is released from the Hospital. Fork attempts to assassinate HQ chief Kubersly. Reinhard decides to lead the main fleet against Geiesburg while Kircheis, helped by vice-admirals Lutz and Wahlen, will take control of the other areas. Meanwhile, in the Free Planets Alliance, a military uprising begins (April 3, 797 S.C. / 488 I.C.). In Heinessen, a military coup overthrows the High Council (April, 13): the National Salvation Military Council, led by admiral Greenhill, suspends the democratic institutions. Trüniht goes into hiding. Yang decide to fight for democracy : the 13th Fleets leaves Iserlohn (April, 20) while the 11th Fleet goes out to stop it.

The Lippstadt League plans to draw Reinhard to Geiesburg in order to defeat him in a decisive battle. As a part of this plan, admiral Staaden has to lead a fleet to Odin in order to cut Reinhard's fleet from its base. Mittermeyer is sent to intercept Staaden, whose fleet is crushed during the battle of Altener and withdraws to the Rentenberg fortress. Reinhard decides to take the fortress, but the boarding parties are repelled by the garrison, led by admiral Ovlesser. An assault led by Mittermeyer and Reuenthal succeeds, and Ovlesser is taken prisoner. Reinhard wants to execute him, but Oberstein advises to send him back to Geiesburg. Ovlesser is released, but is executed by Braunschweig who thinks he was freed because he turned against him. Fear of treason spreads among the Lippstadt League.

Schenkopp takes control of the rebel planets on behalf of the Yang fleet. The National Salvation Military Council sends commodore Bagdashu to Yang to pose as a traitor to the coup in order to kill him, but Schenkopp manages to take him away. Yang's 13th Fleet meets the 11th Fleet in the Doria star system; the 11th Fleet is destroyed because its commanders turn down Yang's proposal of surrender. After the battle, Bagdashu decides to join Yang because his victory is certain. Meanwhile, in Heinessen, a peaceful gathering against the coup is held in a stadium. When the army tries to scatter it, it turns into a riot, and thousands are killed, including Jessica Edwards.

Littenheim leaves Geiesburg with his fleet to recover the territories conquered by Kircheis. Because of its lack of discipline and overconfidence of its commanders, the Littenheim Fleet is defeated; while running away, Littenheim's spaceship opens fire on allies who are in the way. In the Garmisch fortress, Littenheim is killed by his men, enraged by such an attitude. Meanwhile, Reinhard's fleet arrives in the area of Geiesburg. The Lippstadt Fleet attacks him but is utterly beaten and barely avoids complete destruction thanks to admiral Merkatz.

And uprising takes place in Westerland, one of Braunschweig's territories. He decides to kill all the inhabitants by a nuclear strike. Reinhard hears about the plan and wants to send a fleet to stop it, but Oberstein thinks it's better to let it happen, record it and use this monstruous act as a propaganda tool against the high nobles. Reinhard is against it, but Oberstein's plan succeeds because he lied about the time of the strike. The images are nevertheless broadcasted in all the Empire: Reinhard becomes the hero of the commoners and, even in Geiesburg, many think its time to get rid of the high nobles. The Lippstadt Fleet makes a last sortie, but is defeated; baron Flegel is killed by his men when he wants to make a suicide attack, and his crew flees to Phezzan. Merkatz, too proud to surrender, decides to kill himself, but Bernhard von Schneider advises him to take refuge in Iserlohn. Braunschweig is forced to commit suicide by Ansbach, his chief retained, who promises to avenge him. September 797 S.C. / 488 I.C.: fall of the Geiesburg fortress and end of the Lippstadt League.

After Yang's victory, the National Salvation Military Council loses its supporters and only controls Heinessen, well protected by the Artemis Necklace. Yang decides to use propaganda and asks Bagdashu to publicly admit that the Empire is behind the coup. Bagdashu's speech is widely broadcasted in Heinessen. The leaders of the coup are astonished, but Lynch, who helped them, says that's the truth. Meanwhile, Yang manages to destroy the Artemis Necklace. Hopeless, the leaders of the National Salvation Military Council decide to surrender, but to destroy all evidence of the Empire's involvement. Admiral Greenill and Lynch are killed in the ensuing gunfight. Democracy is restored. Trüniht, hidden by members of the Earth Cult, comes back to power.