A distraught Lily confides in Carly her fears that Luke could be the killer. Meanwhile, an anguished Holden hands the funeral program that Luke ripped up over to Jack and tells him the fingerprints on it might match the one they found on Julias watchband. Jack is dubious of Lukes involvement but Holden explains the evidence against him. At the police station, Holden recalls fond memories of Lukes childhood while Jack examines Lukes fingerprints. Keith is released from jail and comes to confront Lily and Carly, accusing them of being involved in Julias murder. As things get violent, Luke enters and demands Keith leave his mother alone. Jack and Holden show up and Jack shocks everyone when he reveals that Lukes fingerprint from the funeral program matches the one found on Julias watchband. A horrified Lily then tells everyone Luke didn't kill Julia - she did! Henry admits to Katie that he was at the window and saw her and Mike almost kiss. He realizes that Katie and Mike would have made love had Henry not interrupted but Katie insists that hes wrong. She kisses him passionately to prove it. Henry is shocked, but responds and they make love. Meanwhile, Jennifer is close to telling Mike the truth about her night with Craig. But when Mike explains how his near kiss with Katie has proven to him how devoted he is to Jennifer, Jennifer ends up making love to Mike rather than confessing. Meanwhile, Barbara offers Craig money and power in exchange for staying out of Jennifers life. Craig refuses, certain that Jennifer is a rising star and theyre a team no on can break up. Later, Craig goes by Jennifers house and sees Jennifer and Mike kissing.