Mr. Woodman's niece, Kelly, babysits for the Kotters one night when Epstein comes by looking for Mr. Kotter. He finds Kelly instead, they become acquainted, and they eventually move in together, to Mr. Woodman's horror.

Terrified of going out with pretty Mary Johnson, Horshack believes he can find courage in a bottle.

Epstein is assigned to the school paper and changes it from a dull, lifeless weekly to a gossipy, sensationalist money maker -- almost losing his friends in the process.