Compuware Corporation Announces Preliminary Financial Results for Second Quarter Fiscal 2001

FARMINGTON HILLS, Mich. -- October 9, 2000 -- Compuware Corporation (NASDAQ:CPWR) today announced preliminary financial results for its second quarter ended September 30, 2000. Revenues are estimated to be in a range of $474 to $487 million. Software license fee revenues are estimated to be in a range of $100 to $105 million. Maintenance revenues are estimated to be in a range of $110 to $115 million. Revenues from professional services are estimated to be in a range of $264 to $267 million. Earnings per share (diluted computation before amortization expense) are estimated to be in a range of 4 to 6 cents.

"Quarterly revenues were lower than expected due to a shortfall in software license sales," said Beth Chappell, Executive Vice President, Corporate Communications and Investor Relations. "We are not satisfied with these results. However, our emphasis will continue to be on selling our more than 70 distributed products, which tend to be smaller transactions. We believe we have the right products, in the right markets, to position us for growth. Now we must successfully complete our transition from a large-deal oriented sales force to a high volume, transaction-oriented sales model. Execution is everything.

"Our professional services business continues to improve. Though services revenues for the quarter will be slightly below guidance, we expect services margins to track with the two-to-three percent sequential margin improvement previously communicated."

The company plans to announce final results for the second quarter on October 19, 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.