Great Wolf Resorts Provides Update on 4Q '08 Results

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. February 23, 2009

FEBRUARY 23, 2009 - As previously announced, Great Wolf Resorts, Inc. (NASDAQ: WOLF), North America's leading family of indoor waterpark resorts, will release fourth-quarter 2008 financial results on Wednesday, February 25, 2009, before the market opens. The company will hold a conference call at 10 a.m. ET on that day to discuss its results. The company continues to affirm its previously announced Adjusted EBITDA guidance range for the fourth quarter.

In addition, the company advised that it has completed its annual goodwill impairment assessment, and announced that it expects to record a non-cash, pre-tax charge of approximately $17 million for fourth quarter 2008 related to two of its resorts. The impairment charge does not affect the historical cost carrying basis of the impacted resorts' fixed assets. The company conducted its goodwill analysis and assessment in accordance with the provisions of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets," which requires goodwill to be assessed for potential impairment at least annually. In light of current and expected market and economic conditions for the company's resorts located in Kansas City, Kansas and Mason, Ohio, the company determined that an impairment charge for goodwill associated with these resorts was required. The impairment charge will not have any impact on the company's cash flows or cash position.

The company also advised that it has completed its impairment assessment on its investment in affiliates, and announced that it expects to record a non-cash, pre-tax charge of approximately $19 million for fourth quarter 2008 related to one of its joint ventures. The company conducted its investment in affiliates analysis and assessment in accordance with the provisions of Accounting Principles Board Opinion No. 18, "The Equity Method of Accounting for Investments in Common Stock," which requires that a loss in value of an investment which is other than a temporary decline should be recognized. In light of current and expected market and economic conditions for the company's joint venture that owns resorts located in Wisconsin Dells, Wisconsin and Sandusky, Ohio, the company determined that an impairment charge for the carrying value of its investment in this joint venture was required. The impairment charge will not have any impact on the company's cash flows or cash position.

The company has not completed its estimate of the after-tax impact of the goodwill and investment in affiliate impairment charges on earnings per share; as a result, the company is unable to provid updated guidance on net income (loss) and net income (loss) per share for the fourth quarter and full year 2008. The effect of the goodwill and investment in affiliate impairment charges is not reflected in the company's previously issued net income (loss) guidance for the fourth quarter of 2008. In conformance with the company's practices, these non-cash impairment charges will be excluded from the company's fourth quarter 2008 Adjusted EBITDA and Adjusted net income (loss) calculations.