It's 30 December 1999. Utsumi and Bud have returned to Japan to challenge the SV2 again, and sell their team's services in the format of the Griffin. At the SV2, the AV-Zero is going though its paces. It has been improved and is now much faster. Kanuka has returned to Japan to visit her grandmother and has dropped by to visit her former colleagues at the SV2. Detective Matsui discovers that several top Labor specialists are in town and informs Captain Goto of his findings. Meanwhile, Momoko Sakurayama receives a tip-off that several arms dealers are also in Tokyo. She informs Kumagami, who in turn tells Captain Goto. Something big is going to happen. That night the Griffin Labor returns. Division 2 was previously called out to a fire, so Division 1 is called in to deal with the Labor. Bud soon figures out the Zero's weakness: it is programmed to stop near buildings to avoid damage. He takes full advantage of this and defeats both Patlabors.

Division 2 are on vacation. Noa is doing some cleaning at home, but can't find a personal item she had since she was a child. She goes to work but can't find it there either. She meets Kumagami there who is writing up a proposal to create two extra Divisions. Ota is also there, dismantling and cleaning his Labor's gun. Kumagami submits her plan to Captain Goto and Shinobu. He tells her that they are already planning something like this and ask if she would be interested in being captain for the third division. She says that she would have to think it over, which surprises both Goto and Shinobu. The next day Kumagami is taking a trip to see some of the new cadets who will eventually form the third division, and asks everyone to come along. Asuma says he and Noa can't and tells them they have something important to do. Despite her protests, Noa goes along with Asuma. Meanwhile the rest of the team arrive at the Police Academy to meet the new cadets. Ota decides to prove that he can take on the new cadets, and surprises everyone by using hand to hand combat instead of a gun. He easily defeats the cadet he's up against. When the team are just about to leave, the cadet that Ota had beaten hands over a bag with an item that a former cadet left behind. Asuma takes Noa to a graveyard. He takes her to the Shinohara family grave. He explains that today is the anniversary of his brother's death and that he committed suicide, perhaps to spite his father. On their way back to the car Asuma spots his father coming towards him. He tells Noa to wait in the car so he can talk to him. Asuma and his father have always been on bad terms.