Sam is still reeling from the shock discovery of Annalise's affair with Stonefish. Sonny takes things with Libby too far, and Lou and Cheryl consider the advantages of him marrying someone else for money.

A shattered Sam gets violent with Stonefish. Sonny begs Libby's forgiveness but realises he has taken things too far this time, and Hannah is distraught at the thought of Jen moving out.

Brett finds an ally in Cheryl's best friend, Judy. Sam discovers that Annalise's affair with Stonie is common knowledge in Ramsay Street so he decides to take off, while Stonie nurses his black eye.

Danni refuses to go back and repeat Year Twelve, but Cheryl has other plans as usual. Michael gives Jen some home truths about the way she has treated Phil. Lou and Cheryl still can't decide whether to take the money and run.

Susan and Karl's romantic night is shattered when Susan discovers that Kate was far more than a medical patient to Karl. Hannah visits Jen to get her side of the story about the break-up and for the first time in her life Danni can't talk her way out of a problem.

Karl's distress over Kate's death prompts Susan to wonder exactly what sort of relationship Karl had with her. Annalise collects her things from Marlene's, leaving a note and a ring for Sam. Libby's relationship dramas with Sonny cause gossip that she is pregnant.

Karl and Susan are upset that Libby felt she had to seek help from a counsellor. As Karl prepares to leave for Kate's funeral in Cairns, the tension mounts with Susan. Sam returns, with James Grinner who is a bad influence, and while Annalise tries to talk to Sam, he brushes her off. Annalise tells Joanna she is going away for good.

Annalise leaves Ramsay Street and she shares a sad goodbye with Sam. Jo contemplates going back to Western Australia. Meanwhile, Melissa leaves her diary at Billy's house - naturally he reads it and finds out some interesting information.

Melissa works out that Billy has read her diary, while Helen and Phil discover a girl in Michael's bedroom. Jen's job is under threat; and Stonie enlists Jo's help to put together a creative dance routine for the Performance Arts course.

Helen may be moving to a retirement village, while Luke notices an attraction between Judy Bergman and Brett. Stonefish wins a place in the performance arts class and starts work as a theme waiter at the coffee shop.

Melissa discovers that Billy misread a passage and innocently calls him stupid. Helen applies to sit a late entrance exam to get into university as a mature age student and Danni is dreading going back to school to repeat year twelve.

Danni decides to drop out of school after a shocking first day back. Sonny talks Libby into sharing a pizza and a chat, where she outlines what their relationship should be like. Meanwhile Sam's troublesome mate, James, has struck up a friendship with Jen who is working at Chez Chez as a barmaid.

After being sprung kissing James by Hannah, Jen throws herself into a panic. Susan becomes concerned for Billy and his ability to handle Year Eleven, while Luke's job is going well at the Time Share company.

Luke's on cloud nine after a wonderful romantic evening with Nadia. Sam finally has it out with James after he pulled an illegal stunt and Cheryl's had enough of Brett being a slob and not pulling his weight around the house.

Toadfish hassles Billy for information regarding dyslexia; Jo meets with Bruce Styles and is pleased when she discovers how happy he is with her work. Meanwhile Brett enjoys setting himself up in the backyard, and is Judy interested in him?

Toadfish amazes everyone with the results of his IQ test. Brett and Judy try to come to terms with their new relationship and Helen offers Brett some great advice on life.

A very famous postman visits Ramsay Street. Danni lets Cheryl know that her overprotective style of mothering is driving Brett away and Stonie is sorry that he ever mentioned the daggy coffee shop uniforms to Angie.

Valentine's Day brings with it some very strange outcomes for the residents of Ramsay Street. Cheryl finally extends the olive branch to Brett and Karl returns from Kate's memorial service, but the strain between Susan and himself is still there.

Mal realises that Kate must have been more than just a patient to Karl and Hannah suffers the ultimate humiliation when the teacher reads her letter about his good looks.

Karl and Susan continue to drift apart, neither wanting to bring up the issue of Kate. Hannah wags school in order to escape embarrassment over her note and Jen decides to spend a weekend devoted to her art.

Mal suspects Karl had an affair with Kate and looks for evidence. Hannah and Toadie become partners in crime and Mal and Stonefish have a surprise classmate.

Cheryl spies Brett and Judy together and realises the truth about their relationship. The Kennedy's have a family meeting about Karl's relationship with Kate and Toadie gets sprung wagging school.

Jealous Danni gets her just desserts when she demands that Malcolm change his behaviour. Lou has a new professional rival in Marlene, and Cheryl and Judy have a heart to heart talk about Brett.

Joanna is shattered by Cody's cruel jibes, whilst Sam and Cody are having a great time together. The success of Marlene's radio show could place Lou's future in jeopardy.

Danni goes into a tailspin after Mal dumps her, and Mal's smugness soon disappears when Rupert appears eager to take his place in Danni's life. Life looks up for Jo when she meets a lovely man at the gym, the only problem is that one of her friends just broke up with him.