Compuware and Detroit Public Schools Make Major Deal to Manage the District's Information Technology Services

5-Year Deal Expected to Save School District Money and Improve Internal Operations

FARMINGTON HILLS, Mich. -- August 16, 2000 The Detroit Public Schools (DPS) today announced its intent to award Compuware Corporation (NASDAQ:CPWR) a five-year agreement to provide high quality, cost-effective information technology (IT) services to the Detroit Public Schools system. The school district currently spends about $20 million a year to operate its own IT services. The professional services agreement will provide the 167,000-student district with mission-critical IT services that support finance and budget operations, human resources/payroll, food services, transportation, special education and student information services. The initial partnership agreement--believed to be one of the largest of its kind between a corporation and a Michigan public school district--will provide for two, two-year extensions.

At a 10:00 a.m. press conference today, Dr. Kenneth Stephen Burnley, newly appointed DPS Chief Executive Officer, delivered a signed letter of intent to Compuware Chairman and CEO Peter Karmanos, Jr. at the DPS Schools Center Building in Detroit. Following the press conference and meetings with employees, union leaders and vendors will meet with representatives from DPS and Compuware to answer questions and explain the transition process. A comprehensive program for the smooth transition of affected employees will be developed during the six to eight weeks it will take to reach a final contract.

Over the next one to two months, as the agreement is finalized, Compuware expects to offer employment opportunities to DPS employees affected by this agreement. District IT areas involved include the data center, help desk, telecommunications, audio visual, field services, web site maintenance, LAN/WAN support and support of all applications. The affected jobs include those of computer program analysts, primary program analysts, computer equipment technicians, clerical/help desk, computer operators, program associates, clerical, audiovisual/technicians, microcomputer equipment technicians, computer network analysts and technician coordinator. The degree of contracted services will be subject to negotiations, including pricing.

The letter of intent, and subsequent contract, will call for Compuware to achieve specified economic and cultural objectives set forth by the DPS. Economic objectives include a reduction in operating expenses and capital labor costs. Cultural objectives include a commitment to supporting local minority and women-owned businesses. DPS and Compuware agreed that improving the delivery of school district information technology services is a primary goal and an immediate priority.

"Our agreement with Compuware is very important to the Detroit Public Schools because it will allow us to focus on our core mission, which is the education of our children," said Burnley. "Compuware's track record of helping organizations cut costs and improve efficiency will help DPS administrators and teachers do their jobs more effectively. With this agreement, we are pleased to recognize Compuware's commitment to the Detroit Public Schools."

"Compuware is proud to support Dr. Burnley's vision of a world-class school system that emphasizes education first," said Karmanos. "We welcome the opportunity to help Dr. Burnley restore the Detroit Public School system to its previous status as one of the nation's finest and best-run school districts."

Earlier this year, DPS communicated its intent to become a more efficient and effective organization when it announced an Internet-based, e-commerce purchasing system for deeply discounted school supplies through office supply retailer Office Depot. The much larger Compuware agreement is expected to save the 20,000-employee school system additional money while improving internal operations.

"It just makes good business sense to review all of our practices in this way," said Robert Moore, Jr., DPS Deputy Chief Executive Officer. "Today's announcement relates to the business side of the district's operations. There will be other announcements about technology enhancements that speak to the student achievement aspect of the school district's needs in the very near future."

Compuware and its health care subsidiary, Care Tech Solutions, Inc., entered into a similar productivity partnership last year to provide information technology solutions to The Detroit Medical Center.

"As a Compuware employee and a product of the Detroit Public Schools system, I am excited and thrilled to be a part of this opportunity," said Compuware Professional Services Sales Director, Pat Bennett. "I believe, with the use of technology, we can assist the teachers and the administrators in performing their jobs more effectively."

Compuware announced in April 1999 its intent to build a one million square foot world headquarters in Detroit's Campus Martius district and to construct a second building on the riverfront east of the Renaissance Center. Compuware's new headquarters facility is scheduled to be completed in 2002.

Compuware Corporation

With fiscal 2000 revenues of more than $2.2 billion, Compuware is a world leader in the practical implementation of enterprise and e-commerce solutions. Compuware software products and professional services help 14,000 of the world's largest corporations more efficiently maintain and enhance their most critical business applications. Compuware products and services improve quality, lower costs and increase the speed at which systems can be developed, implemented and supported, providing an immediate and measurable return on information technology investments. 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.