Jack skilfully convinces Elizabeth to de-genius Toby and she builds a new MFE machine. When Elizabeth leaves to find Toby, Jack powers up the machine and, having already stolen the formula, turns himself into a genius. Toby and Elizabeth return and Jack threatens to de-genius them both. In a scuffle, Jack escapes with the shrink ray and the MFE machine. Toby goes after him. Jack fires the shrink ray, missing Toby, but hits a koala, turning it into a giant. He aims again, about to shrink Toby when Russ turns on the MFE machine, de-geniusing Jack just in time. The King Kong sized koala is terrifying Sandy Bay and Elizabeth invents a high frequency scream machine to lure it away. Instead it captures her, and takes her to Sandy Bay Bridge. It looks as if there is no hope for Elizabeth but Toby arrives on a flying surf board, buzzes and blinds the giant koala so it drops her. He swoops and rescues Elizabeth, carrying her to safety on the beach. Russ and Sacha shrink the koala back to size and the trio return to the bungalow to eat some pizza and plan for the holidays.
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