Acting independently, Milfoil plans to kill ALF under the guise of a beauty treatment and leaves a paper trail implicating his aide-de-camp, Second Lieutenant Harold Reese.
Unwilling to give up his comforts, ALF sneaks out and contacts one of his former guards to arrange a supply drop before accidentally entering a strip club called the "Kitty Kat Lounge", which he mistakenly believes to be a restaurant that serves cats.
With both the local police and the military alerted, the trio turns to Dexter Moyers, a former NASA scientist who was falsely discredited by the government as part of an anti-UFO conspiracy.
Meanwhile, Hill learns that Moyers has set up a secret auction alongside the broadcast, intending to sell ALF to the highest bidder, and he imprisons her after she refuses to participate.
ALF, unaware of the betrayal, enjoys the attention until stage fright and his host's hostility lead him to lock himself in the bathroom, giving the military time to shut down the broadcast.
Back at Edmonds, Milfoil gloats that ALF's escape means he can convince his superiors to have him executed, with his hatred being revealed to be as payback for an alleged alien abduction that drove his mother insane.