As the year kicked off, The Bug (Christine) was starting a new career working under attorney Michael Baldwin, Katherine and Rex Sterling were planning to remarry and Nikki Newman's life was miserable. Divorced again from Victor, Nikki was addicted to drugs and alcohol. Victor wanted her to have back surgery and if she didn't, he threatened to seek custody of the kids. Distraught, Nikki washed more pills down with booze and then went for a walk.

Son Nick Newman found is mother face down in the snow. Jack Abbott rushed Nikki to the hospital. Married to Ashley Abbott at the time, Victor spent most of his time at Nikki's bedside. Upset, Ashley was spending time with Brad Carlton who was married to Traci Abbott. Victor told Ashley he had to spend time with Nikki because she was the mother of his children.

Jack and Victor finally convinced Nikki to have surgery. The operation was a success. Daughter, Victoria Newman meantime was hoping her mom and dad would reconcile but Victor told her it would never be. But, Nikki and Victor were becoming closer.

Meantime, a baby was born to Brad and Traci. Colleen didn't resolve their marriage problems however. When Traci's publisher, Steve Connelly came to town he and Traci became attracted. Traci moved to New York with the baby to live with Steve. Brad turned to Lauren Fenmore, then to Ashley for a shoulder to cry on. Soon, Traci had him served with divorce papers.

Scott Grainger was tired of his marriage to Sheila Carter. Lauren had just lost her son Dylan and Paul Williams wanted Lauren to get professional help. Lauren turned to Scott who fell in love with her. While this was going on, Sheila was threatening to have her mother, Molly, committed because Molly was getting her speech back. When Molly spotted Scott Jr.'s birthmark, Sheila hired a plastic surgeon to remove it.

Scott suggested divorce to Sheila and she threatened to leave town with Scotty.

In other news, Katherine Sterling and Jill Abbott agreed to put their past behind them. Katherine asked Jill to be her matron of honor at the wedding which gave Jill an idea on how to trap John Abbott. She hid a marriage license in a pile of papers John had to sign, got the blood tests and rings and bribed the minister at Katherine and Rex's wedding to make it a double ceremony. Unfortunately for Jill, John refused to go along.

During a routine medical checkup, Katherine discovered she had a lump in her breast. She didn't tell Rex but did turn to Jill for support. Jill told Rex and Katherine had successful surgery.

Jill moved out of the Abbott home and took up with photographer Blade Bladeson to make John jealous. Jill's plan took a weird twist when she ended up sleeping with Victor Newman. When Victor dumped her, Jill went back for John.

As the year progressed, Lauren found out that Dylan wasn't her biological child. Paul Williams thought there may have been a case of baby-switching.

Scott told Sheila he wanted a divorce. Mad as hell, Sheila kidnapped Lauren and Molly and drove to her mother's farmhouse in Michigan. After some time, a fire broke out and seemingly out of nowhere, Paul and his secretary, Lynne Bassett arrived to save the day. The cops found a body in the fire rubble and that it was Sheila. It was really a utility man who was in the wrong place at the wrong time. Sheila was on her way to Los Angeles where she went to work as Eric Forrester's nursemaid.

Fearing the other would get custody of the kid, Lauren and Scott got married for the sake of the child. Lauren turned to Brad again.

Meantime, Danny Romalotti was becoming suspicious of Michael Baldwin. The Bug was spending way too much time at the office. When Baldwin kissed the Bug after a court verdict went their way, the Bug began to wonder. It wasn't long until Baldwin told the Bug that if she wanted to climb the corporate ladder she would need to cooperate with him.

The Bug ran to attorney John Silva to file a sexual harassment charge. Later, the Bug discovered that other women had complained about Baldwin in the past including the Bug's next door neighbor, Hilary.

Baldwin moved fast. He tried to reestablish a relationship with Hilary and even proposed marriage. The Bug needed more evidence so she and Danny staged a public breakup. Baldwin invited the Bug to go with him to Los Angeles on a big case. In a hotel room, Baldwin made his move and the Bug got it all on tape. Baldwin was subsequently fired.

Also in the news this year was Drucilla Barber. She eventually met Blade who was attracted to Ashley. See Winters History

Ryan McNeil was hitting on Victoria Newman but she didn't want him at first. However, Nina Webster did. On her first date, Nina, who had a potential good thing going with John Silva, slept with Ryan and the relationship took off.

But by this time, Victoria had changed her mind and Ryan couldn't make his up until he realized he might end up the next head of Newman Enterprises. Ryan was just about to pull the plug on Nina when she showed up one day with a bright red convertible she bought him as a graduation present. Ryan suddenly remembered; Nina was part of the Chancellor money. Nina and Ryan returned to his apartment one day and hit the sheets. They didn't know Victoria was hiding in the closet at the time.

Ashley was still confused. Her days with Victor appeared to be numbered when she heard Nikki still loved Victor. Her hopes were raised when Victor wanted to plan the honeymoon they had never had. Meanwhile, Jack was sure his marriage to Nikki was solid and he told Victor to stay away from the ranch. There was still a slight problem. Nikki was hitting the booze.

On the business front, the merger between Newman Enterprises and Ra-Tech had been finalized. Brad and Jack proclaimed they would be running the show and made plans to takeover Newman Enterprises. When Victor found out what they were up to he bugged Jack's office. With evidence in hand, Victor confronted Jack. The verbal battle became so intense Victor collapsed. At first, Jack left his enemy to die and went off to have dinner with Nikki. Later, he called 911.

Jack told Nikki he wanted to destroy Victor and moved off the ranch saying he would not return until Nikki was ready to devote herself to him and not Victor. Victor meantime came to the conclusion that he belonged with Nikki. He proposed and Nikki said she needed time to tell Jack. But, before she could break the news, Jack ended up in the hospital after a minor traffic accident.

While she was at the hospital, Nikki learned she was pregnant with Jack's baby and told Victor she would have to pass on marriage.

Victor figured out that Jack had saved his life so he turned Jabot over to him with a warning not to cross him again.

Ashley was tired of Victor by now and filed for divorce.

As the year came to an end, Victoria was determined to get Ryan into bed. When Ryan refused she told him what she had seen. Ryan felt so bad. He wanted to prove to Victoria that yes, he did love her. Excited, Victoria got her father to allow her to go to Chicago with the boy Victor has set her up with, Brandon. Ryan showed up and traded places with Brandon. With fake ID, Victoria, only 17, and Ryan were married at City Hall.

Nina couldn't wait to tie the knot with Ryan. Jill had even approved of Ryan as a potential step-father to grandson, Phillip. Nina's world fell apart when Ryan broke the news of his marriage to Victoria. Nina ran to Victoria threatening to tell Victor so Victoria told Ryan he was free to go. But Ryan wanted to stay with her if she agreed to do something about her inability to have sex.

Victor felt something was up with his daughter so he hired Paul to follow Victoria. When Victor found out what was going on he had Ryan arrested on criminal sexual assault charges. Victoria confessed they were married so Victor gave Ryan a blank check to get out of his daughter's life.

Saying he really did love Victoria, Ryan ripped the check up. He and Victoria moved on with their lives as Victor and Nina vowed to break them up. Later, Victor found out Victoria was seeing a sex therapist and spent New Year's Eve with Nikki discussing their daughter's troubles.

Ashley, her divorce final, was hanging out with Brad who was still involved with Lauren.

Michael Baldwin was still gathering evidence to support his case. He arranged to have Danny's tea spiked which put Danny in a compromising position with another woman which Baldwin got on film. Lynne, still in love with Paul, was excited when Paul asked her to go on a ski trip with him. Unfortunately, Lynne broke her ankle and Paul was becoming obsessed with the fact it was his daughter's, Heather, birthday. These thoughts must have been powerful because April soon arrived in town. Mary Williams was eager to get her son and April back together but Paul wasn't interested. Besides, April was married to Dr. Lynch.

As the year wrapped up, Nina decided she wanted to locate her long-lost father and hired Paul for the job and John asked Jill to move back in with him.