Great Wolf Reports 4th Qtr Net Loss of $38 mil

4th Qtr Occupancy and RevPAR Decreased

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. October 14, 2008

MADISON, WI, February 22, 2006. Great Wolf Resorts, Inc. (Nasdaq: WOLF) Fourth Quarter highlights:

Reported Adjusted EBITDA of $3.7 million, total revenues of $27.4 million and Adjusted net loss per share of $(.08).

Entered into a joint-venture agreement with CNL Income Properties that purchased the Great Wolf Lodge resorts in Wisconsin Dells, Wis. and Sandusky, Ohio.

Opened the 401-suite Great Wolf Lodge resort in the Pocono Mountains, Pa.

Conducted pre-opening hard hat tour for Great Wolf Lodge resort under construction in Niagara Falls, Ontario, Canada.

Great Wolf Resorts, Inc., the nation's largest owner, operator and developer of drive-to family resorts featuring indoor waterparks and other family-oriented entertainment activities, today reported results for the fourth quarter and full year ended December 31, 2005.

For the fourth quarter, the company had a net loss of $(38.0) million and net loss per diluted share of $(1.26). The net loss for the quarter included the impact of the write-off of $43.2 million of goodwill in connection with the sale of 70% interests of the company's Wisconsin Dells and Sandusky Great Wolf Lodge resorts to the CNL joint venture. This one-time, non-cash charge resulted in a GAAP net loss for the period, which also included the effect of income tax expense due to the non-deductibility of the goodwill charge for income tax purposes. Excluding the goodwill adjustments, the CNL transaction valued the joint-venture assets at $114.5 million, which was $25.9 million in excess of the historical cost carrying value of the properties' fixed assets.

"We had a strong fourth quarter and achieved adjusted EBITDA and adjusted earnings per share within our earnings guidance," said John Emery, chief executive officer. "The quarter was highlighted by the opening of our second resort in 2005, which is located in the Pocono Mountains near New York and Philadelphia. Our booking pace in 2006 is strong, particularly in the Eastern markets, creating a positive outlook for 2006. Importantly, our recently- opened properties in Poconos and Williamsburg both appear to be on track to achieve mid-teen or better unlevered returns, calculated as property EBITDA divided by historical gross cost of property and equipment."

Operating Results

"Our new Poconos resort is off to a great start," Emery noted. "The 2006 booking trends continue to exceed our expectations and year-to-date lead all of our properties. In fact, with over 50,000 room nights reserved to date, booking patterns at our Poconos resort are two to three times higher at this stage of the ramp-up phase than any property opened in recent years. We continue to look for ways to respond to our customers' needs; as an example, we are adding a full-service Starbucks Retail Coffee Store in the resort's lobby area, which will open shortly, a first for any of our properties.

"Our Kansas City resort also performed very well, showing continued strength after its ramp-up period," he commented. "Our Williamsburg resort also continues to ramp-up well. We soon will break ground on an $18 million expansion of the resort that will add 100 suites, a substantial waterpark addition and 5,000 square feet of new meeting space. Our Wisconsin Dells property also has performed satisfactorily in a very competitive market. The current booking pace for the property is 20 percent ahead of 2005, and we have a highly anticipated opening of our 38,000-square-foot waterpark expansion in the first quarter of 2006.

"Our Michigan and Ohio properties continue to be affected by the regional economic issues in the Midwest," Emery said. "Over the near term, we expect that these properties will operate below historical levels of rate and occupancy. However, over the long-term, we believe these properties will rebound to much stronger operating levels. We believe we have a good grasp of the current market conditions and are monitoring any changes in trends very closely. We have factored into our estimates the effect of the regional economic issues in setting our 2006 guidance."

"We also have further sharpened our focus on the Blue Harbor Resort in Sheboygan, Wis. We intend to increase our emphasis on group business to build mid-week revenues, and recently hired a new general manager who has significant experience in that market segment. Although the ramp-up for this property will continue slowly, we feel optimistic about its longer-term prospects," Emery said.

"For our portfolio of all properties, ADR, RevPAR, Total RevPOR and Total RevPAR increased year-over-year in the fourth quarter," said Emery. "On a same store basis year-over-year for the fourth quarter, ADR and Total RevPOR increased while occupancy, RevPAR, and Total RevPAR decreased, predominantly due to the markets in northern Ohio and Michigan.