Compuware Corporation Announces Preliminary Financial Results for First Quarter Fiscal 2001

FARMINGTON HILLS, Mich. -- July 7, 2000 -- Compuware Corporation (NASDAQ:CPWR) today announced preliminary financial results for its first quarter ended June 30, 2000. Revenues are estimated to be in a range of $490 to $510 million. Software license fee revenues are estimated to be in a range of $120 to $130 million. Maintenance revenues are estimated to be $115 million. Revenues from professional services are estimated to be in a range of $255 to $265 million. Earnings per share (diluted computation before amortization expense) are estimated to be in a range of 7 to 9 cents.

"We are very disappointed with our software sales results," said Beth Chappell, Executive Vice President of Corporate Communications and Investor Relations. "In spite of our best efforts to work closely with the investment community to set reasonable and attainable expectations for the quarter, the softness of the market had a significant impact on our results. Once again, we had several large deals that did not come in at the end of the quarter." Chappell continued, "Our professional services business is on track with guidance. We expect a minus two to three percent margin for the quarter in services and are pleased to note that we had a slightly positive services margin in May and expect similar results for June. This represents a five to six percent margin improvement over last quarter."

Compuware management will hold a conference call today at 3 p.m. EDT in order to discuss these preliminary results. The conference call telephone number for calls originating in the United States is 888-790-3323. For those calls originating outside the United States, the number is 630-395-0189. The conference call password is Compuware. A replay of the call will be available shortly after its conclusion. To access the replay from the United States, call 888-568-0063. To reach the replay from outside of the United States, call 402-530-7766.

The company plans on announcing final results for the first quarter on July 18, 2000.

Compuware Corporation

With fiscal year 2000 revenues of more than $2.2 billion, Compuware is a world leader in the practical implementation of enterprise and e-commerce solutions. Compuware productivity solutions help 14,000 of the world's largest corporations more efficiently maintain and enhance their most critical business applications. Providing immediate and measurable return on information technology investments, Compuware products and services improve quality, lower costs and increase the speed at which systems can be developed, implemented and supported. Compuware employs more than 15,000 information technology professionals worldwide. For more information about Compuware, please contact the corporate offices at 800-521-9353. You may also visit Compuware on the World Wide Web at http://www.compuware.com.