Compuware Earns 9 Cents Per Share in Q2

Year-over-year Net Income and Earnings Increase 28 Percent

FARMINGTON HILLS, Mich.--October 17, 2002--Compuware Corporation (NASDAQ: CPWR) today announced financial results for its second quarter ended September 30, 2002.

Compuware reports second quarter revenues of $358 million, compared to $427.8 million in the second quarter of the previous fiscal year. Net income increased to $33.8 million from $26.5 million in the same quarter of fiscal 2002. Earnings per share (diluted computation) were 9 cents compared to 7 cents, based upon 376.7 million and 386.7 million shares outstanding, respectively.

During the company’s second quarter, software license fees were $87 million, maintenance fees were $103 million and revenue from professional services was $167.9 million.

"These positive results confirm to us that customers are continuing to recognize the value inherent in the products and services we offer," said Peter Karmanos, Jr., Compuware Chairman and CEO. "Unlike the last several years, it’s not enough to have just the best product or the latest technology. Customers’ purchasing decisions are increasingly evaluated on the benefit to the business, return on investment and total cost of ownership. Our strategy of providing the highest value is earning strong support, as customers realize Compuware’s ability to help them save time and make their IT staffs more productive."

Second Quarter Fiscal Year 2003 Highlights

During the second quarter, Compuware:

Announced that Compuware TestPartner 5.1.0 earned interface certification from SAP. TestPartner now provides testing support for both mySAP.com and non-SAP applications, assuring that software applications work as they should throughout development and after changes made during testing.
Was selected as the Production Support and Testing Partner for DaimlerChrysler Corporation’s business-to-consumer web sites in North America. Compuware professional services personnel will provide support for 26 key components of various consumer web sites, such as the Chrysler, Jeep® and Dodge brand sites.
Introduced DevPartner64, which provides debugging and automated error detection for the Intel® Itanium® processor family. This product accelerates the development of high quality applications and drivers by improving productivity for developers.
Unveiled DevPartnerDB 4.1 for Microsoft SQL Server, a tool that significantly reduces application development time while improving application reliability. This product accelerates the development of reliable applications by providing developers with the ability to perform proactive debugging of Transact SQL.
Released DevPartner Studio 7.0 Professional Edition, a comprehensive suite of tools that improve the productivity of developers building applications and web services using Microsoft Visual Studio .NET and Visual Studio 6.0.
Announced the availability of DevPartnerDB Debugger for Oracle for Microsoft Visual Studio .NET. This development tool gives developers a clear understanding of exactly how their applications are interacting with databases.
Made DriverStudio 2.7 generally available. DriverStudio 2.7 helps engineers produce highly reliable device drivers that meet strict quality standards and tight hardware release schedules.
Introduced OptimalView 2.3. OptimalView provides a single access point to the critical information, applications and processes that help users run their businesses. OptimalView 2.3 is integrated with search and categorization technology from Inktomi.
Announced that Predictor, a WAN provisioning and capacity-planning tool, won the "Best Network Application and Operating Software Product" award at the Networking Industry Awards 2002. These awards recognize the success of companies leading the way in the voice and data networking market.

Conference Call Information

Compuware will host a conference call to discuss these results at 5:00 p.m. Eastern time (21:00 GMT). Interested parties calling from the United States should call 877-459-8388. For international access, the conference call number is +1-212-287-1619. The password for the conference call is Compuware. A conference call replay will also be available. For more information, visit the Compuware Corporation Investor Relations web site at http://www.compuware.com.

Compuware Corporation

Compuware Corporation, a multi-billion dollar company, 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. 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.

Certain statements in this release that are not historical facts, including those regarding the Company’s future plans, objectives and expected performance, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. While we believe any forward-looking statements we have made are reasonable, actual results could differ materially since the statements are based on our current expectations and are subject to risks and uncertainties. These risks and uncertainties are discussed in the Company’s reports filed with the Securities and Exchange Commission. Readers are cautioned to consider these factors when relying on such forward-looking information. The Company does not undertake, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.