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Wednesday, September 27, 2006

MADISON, Wis. & CHEHALIS RESERVATION, Wash. (Business Wire) -- Great Wolf Resorts, Inc. (NASDAQ:WOLF), America's leading family of indoor waterpark resorts, and The Confederated Tribes of the Chehalis Reservation today announced that October 24 is the date for the official groundbreaking ceremony for their Great Wolf Lodge - Washington's first indoor waterpark resort - and conference center to be built in Grand Mound, Washington. The resort will be built by a joint venture between the two entities: a subsidiary of Great Wolf Resorts will operate the resort, The Confederated Tribes of the Chehalis Reservation will contribute a 39-acre land parcel needed for the resort, and both parties will maintain equity positions in the joint venture.

Inspired by the spirit and adventure of the northwoods, Great Wolf Lodge will be a first-class, full-service, family destination resort. Serving as Washington's Year-Round Family Resort(TM), Great Wolf Lodge will provide a comprehensive package of family entertainment and lodging amenities including: 390 all-suite guest rooms; a 67,000 square-foot indoor entertainment area which will feature Washington's largest indoor waterpark; a 30,000 square-foot conference center; multiple food outlets; a Starbucks(R) coffee shop; an Aveda(R) Concept Spa; a children's craft and activity room; a 100-game arcade with ticket redemption; a fitness room; and a gift emporium.

The joint venture today also announced enhancements to the previously-announced size and amenities of the resort, including:

-- Increasing the size of the resort to 390 suites from 317 suites

-- Redesigning the resort footprint to an eight-story structure to preserve the ability for additional development on the joint venture's land parcel

-- Adding waterpark amenities, including the enclosed, six-story Howlin' Tornado(TM) extreme funnel ride

-- Augmenting the resort's family-oriented attractions to include MagiQuest, a live-action fantasy adventure, where guests are part of the three-dimensional interactive game

-- Increasing the outdoor amenities with the addition of an upscale family miniature golf course

-- Expanding the experience for teen guests with several targeted amenities and activities

-- Supplementing the indoor waterpark with a spacious sun deck with an indoor/outdoor hot tub

-- Expanding the resort's food and beverage offerings to include a second northwoods-themed family restaurant

"The increase of size and enhancements to our resort reflects the continuing evolution of the Great Wolf Lodge brand and our experience from our other locations," said John Emery, Great Wolf Resorts chief executive officer. "Our successful recent developments have demonstrated the value to our company and our customers of adding these types of amenities and expanding the overall family vacation experience. We continue to focus on our goal of building resorts that optimize the efficient development of our site and respond proactively to marketplace dynamics. We believe the Grand Mound project will benefit from these enhancements, both by providing a fuller consumer experience and by establishing a higher barrier to entry for potential competitors."

The redesign process and construction of the expanded facility add 60 - 90 days to the original development schedule. Construction is commencing and the redesigned and expanded resort is expected to open in early 2008.

About Great Wolf Resorts

Great Wolf Resorts, Inc.(R) (NASDAQ: WOLF), Madison, Wis., is North America's largest family of indoor waterpark resorts, and, through its subsidiaries and affiliates, owns and operates its family resorts under the Great Wolf Lodge(R) and Blue Harbor Resort(TM) brands. Great Wolf Resorts is a fully integrated resort company and owns and/or manages Great Wolf Lodge locations in: Wisconsin Dells, Wis.; Sandusky, Ohio; Traverse City, Mich.; Kansas City, Kan.; Williamsburg, Va.; the Pocono Mountains, Pa.; Niagara Falls, Ontario; and Blue Harbor Resort & Conference Center in Sheboygan, Wis. Great Wolf Lodge properties are currently in predevelopment and/or under construction in Mason, Ohio; Grapevine, Texas; and Grand Mound, Wash.

About The Confederated Tribes of the Chehalis Reservation

The Confederated Tribes of the Chehalis Reservation are located 25 miles Southwest of Olympia in Oakville along the Chehalis River. The Tribe and its 700 tribal members have a long history of managing programs on the reservation including Health facilities, Public Safety, Child and Family Services and Natural Resources. In recent years the Tribe has had the opportunity to implement a plan for economic development that benefits the entire South Sound region. Chehalis Tribe owns and operates 2 construction companies, 2 convenience stores (one includes a gas station) and the Lucky Eagle Casino. The Tribe has recently opened the Eagle's Landing Hotel, a 69 room hotel with meeting space, pool, spa and covered walkway to the casino. Great Wolf Lodge is part of the strategic plan for the Tribe in diversifying the economic base in the area.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding Great Wolf Resorts' future financial position, business strategy, projected levels of growth, projected costs and projected performance and financing needs, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Great Wolf Resorts, Inc. and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company's ability to control or predict.

Such factors include, but are not limited to, competition in the company's markets, changes in family vacation patterns and consumer spending habits, regional or national economic downturns, the company's ability to attract a significant number of guests from its target markets, economic conditions in its target markets, the impact of fuel costs, the company's ability to develop new resorts in desirable markets or further develop existing resorts on a timely and cost efficient basis, the company's ability to manage growth, including the expansion of the company's infrastructure and systems necessary to support growth, the company's ability to manage cash and obtain additional cash required for growth, potential accidents or injuries at its resorts, its ability to achieve or sustain profitability, downturns in its industry segment and extreme weather conditions, increases in operating costs and other expense items and costs, uninsured losses or losses in excess of the company's insurance coverage, the company's ability to protect its intellectual property, trade secrets and the value of its brands, and other factors discussed under Item IA (Risk Factors) in Great Wolf Resorts 2005 Form 10-K and any additional items listed in the most recent Great Wolf Resorts Form 10-Q. We assume no duty to update these statements.

Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to Great Wolf Resorts or persons acting on its behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.

Great Wolf Resorts, Inc.
Jennifer Beranek (Media), 608-661-4754
or
Alex Lombardo (Investors), 703-573-9317
or
The Confederated Tribes of the Chehalis Reservation
Jeff Warnke, 360-791-1544

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