Compuware Reports 13 Cents Per Share for Fiscal 2001 Third Quarter

FARMINGTON HILLS, Mich. — January 23, 2001 — Compuware Corporation (Nasdaq: CPWR) today announced financial results for its third quarter ended December 31, 2000.

Compuware reports third quarter revenues of $495.4 million, compared with $637.4 million in the third quarter of the previous fiscal year.

Software license fees were $123.2 million during the third quarter, compared with $250.5 in the same period of the previous fiscal year. Maintenance fees were $115.2 million from $113.8 million during the same period last year. Revenue from Compuware’s Professional Services Division was $257.0 million compared to $273.0 million in the third quarter of the previous fiscal year.

Net income before amortization expense was $46.7 million. Before amortization expense, earnings per share (diluted computation) were 13 cents versus 35 cents in the same quarter of last year based upon 369.8 and 386.5 million shares outstanding, respectively.

"We are pleased with the progress we have made in positioning Compuware for consistent long-term growth and improved profitability," said Peter Karmanos, Jr., Compuware Chairman and CEO. "While we believe our revenue numbers could have been higher, we made significant headway in several key areas of our business. One area of significant improvement was distributed software licenses, where we saw a 43.5 percent increase over last quarter. Another area of progress was in our professional services margin, which has climbed to 4.6 percent--a much better-than-expected result." Continuing, Karmanos said, "Our business is on a solid foundation, we are executing our strategy and we are achieving our objectives. Our outlook for the future is very optimistic."

Compuware Corporation

With fiscal 2000 revenues of more than $2 billion, Compuware Corporation provides business value through software and professional services that optimize productivity and reduce costs across the application life cycle. Meeting the rapidly changing needs of businesses of all sizes, Compuware’s market-leading solutions improve the quality, ease the integration and enhance the performance of distributed, e-business and enterprise software. Compuware employs approximately 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.