MADISON, Wis., May 12 /PRNewswire-FirstCall/ -- Great Wolf Resorts, Inc. (the "Company") announced today that the Company and Hovde Capital Advisors LLC ("HCA") have reached an agreement (the "Agreement") under which Eric D. Hovde and Richard T. Murray III will be added to the Board of Directors of the Company. Pursuant to the Agreement, the Company has agreed to include those two individuals as nominees on its slate of director candidates to be nominated by the Board for election at the 2008 annual meetings of stockholders as well as a third nominee reasonably acceptable to HCA. The 2008 annual meeting of stockholders is currently scheduled for May 28, 2008. In connection with the Agreement, HCA has agreed to cease its efforts to elect a slate of three nominees to the Board at the 2008 annual meeting.

Randy Churchey, the Company's interim Chief Executive Officer, said "We are pleased to have reached an agreement with HCA. Management welcomes the perspectives and insights of our new directors."

Eric D. Hovde stated, "Our nominees look forward to working with the other directors and management to build and deliver value for all stockholders."

About Great Wolf Resorts, Inc.

Great Wolf Resorts, Inc.(R) , 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; Mason, Ohio; Grapevine, Texas; and Grand Mound, Wash.; and Blue Harbor Resort & Conference Center in Sheboygan, Wis. Great Wolf Lodge in Concord, N.C. is currently under construction.

The company's resorts are family-oriented destination facilities that generally feature 300 - 400 rooms and a large indoor entertainment area measuring 40,000 - 100,000 square feet. The all-suite properties offer a variety of room styles, arcade/game rooms, fitness rooms, themed restaurants, spas, supervised children's activities and other amenities. Additional information may be found on the company's Web site at http://www.greatwolf.com/.

About Hovde Capital Advisors LLC

Hovde Capital Advisors LLC provides specialized investment management services to a series of proprietary long/short equity hedge funds. Hovde Capital Advisors LLC is registered as an Investment Adviser with the Securities and Exchange Commission. Since 1994, the firm has invested primarily in publicly traded and closely held companies in the financial services and real-estate related sectors, utilizing the knowledge and experience of its principals and affiliates to identify attractive investment opportunities and strategically position investment portfolios to capitalize on changing market and economic trends in an effort to generate positive returns across various economic and interest rate cycles.

Contacts Great Wolf Resorts, Inc. Hovde Capital Advisors LLC Alex Lombardo Richard J. Perry, Jr. Investors (202) 822-8117 (703) 573-9317

CONTACT: Investors, Alex Lombardo of Great Wolf Resorts, Inc.,
+1-703-573-9317, or Richard J. Perry, Jr. of Hovde Capital Advisors LLC,
+1-202-822-8117, for Great Wolf Resorts, Inc.

Web site: http://www.greatwolf.com/