Danny and Snowy are competing in a prestigious amateur bike race. Riding in a tightly-packed bunch, Danny pulls ahead of his main rival, Brett Pier, to the finish line but is unaware Brett has fallen and is seriously injured.

Don is very smug about his latest coup. He's managed to secure the services of a former Russian Olympic track and field coach.

It's coming up to a crucial meet and Snowy is behaving totally out of character. Neither Chris, his coach, nor Danny can understand it. Tom anticipates an invitation to join the national swim team. Alex asks Sandy out on a date. Noodle and Evie realise they may be better suited to just being friends.

Sandy makes a stand against sexploitation on the track by refusing to wear the sexy new running gear the Academy sponsors have supplied.

Tom performs brilliantly when he stands in for an injured member of the elite Aussie swim team. The Academy kids are thrilled for him — until Tom starts to believe his own publicity and becomes a pain.

After receiving a suspension for cheating on an exam, Evie's future at the academy is in doubt when she contemplates leaving school entirely. Without her scholarship, Evie gets a job with the local newspaper so she can continue her training. When the school thugs decide to beat up Snowy at the combined school Academy dance, Danny finally realises where his true loyalties lie. He and Snowy clean up, a team again.

When Sandy's father is arrested for defrauding a children's charity Sandy feels that, somehow, she's to blame. In learning to come to terms with her father's guilt, Sandy realises an inner strength.

When 10-year-old Leila is tricked into revealing Tats' most intimate secrets on television she comes to the painful realisation that a top-class athlete isn't entitled to a childhood.

When Danny tells the other kids Snowy's gay, Snowy thinks his life at the Academy is over. It's a painful experience, but he discovers that things are not as black and white as he thought.

Snowy goes on a disastrous date with Sandy. Not only has he jeopardised his friendship with her, but when Danny finds out his best friend is gay he is totally unable to accept it.

Tom and Jenny are teamed up for the Academy's orienteering exercise. Disaster strikes when the two compete rather than cooperate and Jenny falls and sprains her ankle.

Danny is forced to confront the fact that he and his parents have neglected his younger brother Raph when Raph starts stealing from the Academy. In the process, he learns that Snowy is, truly, his best friend.

Stewie's dad Ted, an ex-professional footballer, is enlisted to help persuade him to specialise. But Ted has his own agenda and Stewie finds himself having to decide whether he wants to stay at the Academy at all.

Sandy's old school friend, Robyn, now a major soap star, turns up at the Academy to film an episode. Sandy is forced to come to terms with the fact that Robyn cares for no-one but herself, and turns the tables on her. Tats is afraid of the direction her relationship with Tom is headed.

The kids are holding a secret party to celebrate Stewie's birthday. Noodle covers up for everyone when their curfew-breaking party is nearly discovered — and is welcomed as one of the gang at last. Monique makes a decision about her future at the academy.

Monique's temporary coach allows her to believe that he is in love with her and her diving improves radically. When she realises that it was all a ploy she is heartbroken.

Tom challenges new boy Noodle to a race. He wins and his confidence and honour is restored. What Tom doesn't realise is that Noodle deliberately threw the race, knowing that Tom needed to win more than he did. In need of money for new equipment, Danny and Steve take on a series of risque jobs

Tom, the swimmer who never loses, has to come to terms with the fact that over-confidence lost him the race. He learns his lesson, but it damages his relationship with his girlfriend Tats.