Luke and Laura Spencer got good news from Dr. Tony Jones about their son Lucky: Lucky would make a complete recovery from his recent gunshot injury. Luke and Laura were terrified when rival gangsters to Frank Smith, retaliating for the death of their hitman, Ivan, attacked them in the hospital. Laura grabbed Lucky, carrying him down the stairwell, and her sister, nurse Amy Vining, let Laura commandeer an ambulance to drive him away.

Furious that his family had been threatened, Luke complained to Sonny Corinthos, Frank Smith's lieutenant in Port Charles. But Laura went to see Frank in prison herself and exacted a promise from him that no harm would befall her or her son. Frank wouldn't guarantee Luke's safety, but he directed Sonny to smash the Garfield's gang's threat.

Realizing that Frank was planning his own prison break out, Luke told Laura he'd help spring Frank and have a final show down with him. Laura didn't like what Luke was proposing, but she trusted him to make things right and found a "safe house" for Luke to bring Frank to after his escape. Sonny was impressed with Luke's daring and offered his help. Sonny also had a job for his friend, the young Stone Cates -- driving the getaway van.

Stone and his brother Jagger still had their differences about Stone's working for Sonny, Jagger worst enemy. Even so, Stone and Jagger had finally rekindled the warm relationship they'd had as kids. Jagger had stopped boxing and planned to become a cop, much to the delight of his fiancee, Karen Wexler. Karen and Jagger's friend Robin Scorpio was pleased that Stone and Jagger had made up. She'd developed a crush on Stone, although her uncle Mac had no use for him whatsoever. Mac felt that Stone was bad news -- a streetkid, a dropout and worst of all, a friend of Sonny Corinthos. The more Mac ordered Robin to stay away from Stone, the more she wanted to see him. Mac's fiancee, Felicia Jones, advised Mac to go easy on Robin and Stone. Felicia, who had helped raise Robin after the untimely death of her parents, talked to her about the ramifications of falling in love. Felicia gently advised Robin not to sleep with her boyfriend until she was truly ready, and told her how to protect herself when she was. When Mac found a condom that Felicia had given Robin, he hit the roof. But Robin told Felicia that sex was the furthest thing from her mind.

Jagger joyously prepared to marry his love, Karen. On the very same day, Stone tried to quell his fears as he prepared to assist in Frank Smith's prison break. Jagger followed Stone when he realized that Stone was planning to drive the getaway van carrying Frank out of prison. When Jagger couldn't convince Stone to return to the wedding with him, Jagger hit his wayward brother and put him on his cycle and sped off. Tragedy struck when the bike spun out into a snowdrift. Hitting his head on the icy pavement, Jagger was knocked unconscious. Stone got help for Jagger as he directed the police away from where he knew Luke would be taking Frank. Luke and Sonny had broken Frank out of jail but it had gone wrong. There had been a shoot-out and Sonny took two bullets, but he got to his car and drove off. Sonny passed out, just as the beautiful Brenda Barrett was passing by in the brand new car she bought herself with earning from her work as the face of Deception Perfume. Brenda drove Sonny to his apartment and called for help, as he directed, and a mob doctor patched him up. In the midst of this life-threatening crisis, Brenda realized that she had truly fallen for this sexy and dangerous man.

When Luke got Frank to the safe house, he took out his gun and pointed it at the mobster, intending to shoot Frank. But just then Laura arrived. Frank grabbed Laura and used her as a shield and got away but later let Laura go. Neutralizing Frank Smith consumed Luke, who finally realized he could do it without shedding blood. He could control Frank if he had some dirt on Frank's beloved daughter Jennifer, whom Luke had once almost married. Jennifer was Frank's Achilles' heel. Luke decided that he and Laura should pay a visit to Jennifer at her Atlantic City casino. Jennifer, who was no longer the thin and willowy woman Luke remembered, couldn't keep her hands off Luke. Her husband Billy Boggs developed instant hots for Laura as well! Fending off the oversexed couple, Luke and Laura escaped, with proof of larceny that could put Jennifer behind bars for years. Luke thought he that he finally had Frank Smith.

After hearing from Sonny that Frank was in San Joaquin, Luke and Laura flew to see him. Police Commissioner Sean Donely, who suspected that Luke had helped Frank escape from prison, followed them -- and he was followed by his reporter wife Tiffany Hill Donely. Luke won Frank's promise to lay off the Spencers with the information Luke had on Jennifer. Luke even saved Sean's life from an alligator attack arranged by Frank's men.

Stone stayed behind with Sonny, who had been nursed back to health by Brenda. The Quartermaines weren't happy with Brenda's new man but, still, Lila encouraged Brenda to trust her heart.

Mary Mae told Luke that Edward and his partners from 20 years age, who included Jack Boland and Frank Smith, before his mob activities were known, had fought Bradley bitterly over his opposition to their projects.

After eavesdropping on Alan and Monica talking about Alan's guilt in Ray Conway's killing, Damian stole the incriminating evidence from police headquarters. He blackmailed Alan and Monica with it for their ELQ votes backing his incinerator project. Alan refused to submit to Damian's blackmail. Damian discovered that he couldn't turn Alan in. Alan's son AJ paid Luke to steal the evidence from Damian's safe, and then AJ kept the evidence for himself.

Miguel saved the day for Lois when her hot band, the Idle Rich, was booked into the Outback. Ned didn't dare perform as Eddie Maine in Port Charles, so he faked laryngitis and was a no-show. When Miguel sang with the band to help Lois out, she knew she'd found another star. But Miguel said that he didn't want to sing professionally. Eddie had already met all of Lois's family in Brooklyn. And Lois found an old friend from her Bensonhurst neighborhood when she ran into Brenda's boyfriend, Sonny Corinthos.

Sonny and Lois had a warm reunion. Since Frank's escape and his involvement with Brenda, Sonny had decided to go legit. When Lois and Brenda decided to open their own record company, L&B Records, Sonny backed them as partner. While keeping his identity as Eddie Maine secret from Sonny, Brenda begged Ned to tell Lois the truth.

Eager to sign up Miguel, Lois learned that he'd been a singer in Puerto Rico, but his contract was owned by a mobster. With Miguel's permission, Lois told Sonny. Sonny used his clout to but back Miguel's contract from Rivera, the Puerto Rican gangster who owned it. Back in Port Charles, Sonny convinced Miguel to sign with L&B.

Sean Donely started to investigate the murder of Bradley Ward and his evidence pointed to Edward as the killer. Edward swore to Mary Mae that he hadn't killed her son and Mary Mae told Edward that she already knew that. Jack Boland lied to the police and incriminated Edward, who was indicted for Bradley's murder. Luke, however, thought that Frank Smith was the more likely suspect and he began his own investigation.

Frank Smith was angry that Luke was sniffing into his affairs again and he formed a plan. Sean had received a call that Jack Boland had been murdered and when Sean arrived at the scene, he found Luke standing over Jack's body. Luke and Sean both knew that Luke had been set up, and Luke suspected Frank. Frank was now hiding out in Puerto Rico. Frank summoned Sonny to Puerto Rico, and Sonny told Luke about the meeting. Luke headed to Puerto Rico and Sean followed him there. Mistaking Sean for Luke, Frank shot him. Luke then stepped out and shot and killed Frank. The Spencers were finally free of Frank Smith!

L&B Records launched Miguel's career with a mega-concert in Puerto Rico. While there, Miguel was reunited with his lost-love, Lily Rivera, the daughter of the Puerto Rican crime boss.

News of Frank's death spread quickly. Damian learned of his father's demise and headed to Puerto Rico with Katherine to retrieve the body. Sonny feared trouble from Rivera and h met with him. Brenda followed Sonny and was caught by Rivera's men. With Luke's help, Sonny and Brenda escaped from Rivera. They leaped into a speed boat and sped away, but Luke was hit by a bullet and fell overboard. Luke shouted for Sonny and Brenda to keep going, and they did. Sonny, Brenda, Lily and Miguel all returned to Port Charles, but they were afraid that Luke had been killed.

Laura knew in her heart that Luke was not dead, and she was right. Lucy had gone to Puerto Rico for Miguel's concert and a wounded Luke had managed to find his way to her room. Lucy helped nurse back to health, while trying to avoid Damian and Katherine, and then smuggled him back to Port Charles.

By year's end, Lily and Miguel were engaged. Sonny, unbeknownst to Brenda, had taken over Frank Smith's mob activities in Port Charles. Against his better judgment, Sonny agreed to let Brenda move in with him, and their friends Ned and Lois were on the path to reconciliation.