The Whereabouts of Happiness
Duo and Quatre hide by the edge of a desert after their mission went wrong. Scout planes circle the area, and they're unable to move anywhere without being discovered. Both Gundam pilots are thoughtful - what to do next now that Heero has killed himself? Quatre explains that they can cross the desert once the sandstorm hits.
Zechs and Noin are at the site where Gundam 01 blew up, and picks up the pieces of the wrecked suit. Zechs plans on putting it back together, he thinks Heero didn't die in the explosion. Because he wants a re-match, he wishes Heero to still be alive.
Once again, Lady Une gets lectured by Treize for acting without asking him about it first. Treize comments that it didn't matter anyway, now they know who the real enemies are - The Gundams, not the colonies. Treize orders Lady Une to take care of the matter. Then tells her to go to Moscow to announce that she's going to space, in addition to requesting her to "loosen up a bit".
Duo and Quatre, along with the Maganacs, cross the desert in the sand storm and arrives at the home of the Maganacs, a country with the same name. Duo and Quatre introduce themselves, and when Duo recognises the Winner surname, Quatre tells him that he'll most likely be disowned for fighting in a Gundam.
Relena arrives at a party held by marquis Weridge in Moscow, despite not having an invitation. When Weridge first sees Relena, he calls her "Katerina"... They talk about the Sank Kingdom, until Lady Une arrives at the party. Lady Une requests a chat with merquise Weridge, who invited Treize to the party to confront him about the war, but then she sees Relena. Quite surprised, Lady Une doesn't have a chance to react before Relena suddenly pulls a gun out of her purse and shoots Lady Une. Fortunately for Lady Une, Relena misses (or maybe it was intentional?), and only destroys the rose on Lady Une's uniform. Then Relena flees... After that, the assembled party blocks the OZ forces way as they try and chase after Relena.
Back in the Maganac city, the assembled citizens and the fighters gather for a party. Duo envies them for being such a close group with a common goal. Quatre and Duo talk about the Gundams, and the similarities in their missions and background. They realise that they even have the same order - destroy them before you are destroyed yourself. Quatre and Duo are both confused, they don't know what to do now that Lady Une threatens the colonies.
Meanwhile out in the city, the Maganacs sees that OZ troops are approaching them. The OZ forces that enters the city demands food and shelter, but Sadaal, the mayor (king?) of the city is suspicious - why the heavy security? An OZ soldier answers that it's because they've had reports of rebels nearby. The soldiers drop of big boxes throughout the city before they leave, and after they've gone, the Maganacs realise it's explosives set to go off at midnight. Quatre and Duo knows it's them they're after, not the city. In a speech to the assembled city, Rashid tells them and the Maganacs that they've been found out, and must evacuate. There's one last thing they'll do, however - see to it that the Gundams escape.
At midnight, the explosives in the Maganac city goes off, and a battle between them and and the OZ forces waiting outside begins. Before Duo and Quatre leave, Quatre promises that they'll come back and fight for the Maganacs later. As the cargo plane circles over the city, Duo uses his Gundam to kill off the rest of the OZ forces. When they leave, Duo promises that next time they meet, the Gundam pilots will be as united as the Maganacs.
Back in Moscow, Relena is fleeing from the OZ forces but has just been captured as Noin suddenly appears and takes control over the situation. Claiming she acts on orders directly from Treize, she protects Relena and scares the OZ soldiers off. Relena is very suspicious, and points her gun at Noin. To prove she's on the good side, Noin shoots away the OZ mark from one of the hats left by the soldiers who fled in a hurry. She says that she's there to escort princess Relena Peacecraft.