Compuware Beats Consensus Estimates, Earns 13 Cents Per Share*

Third Quarter Software Revenues Increase Nearly 45 Percent Sequentially, Operating Cash Flow for Quarter Is $88 Million

FARMINGTON HILLS, Mich.-- January 22, 2002 -- Compuware Corporation (Nasdaq: CPWR) today announced financial results for its third quarter ended December 31, 2001.

Compuware’s net income before amortization of intangible assets acquired as a result of acquisitions (amortization expense) increased to $49.3 million in the third quarter from $46.7 million in the same quarter of fiscal 2001. Third quarter earnings per share before amortization expense (diluted computation) were 13 cents, matching 13 cents in the same quarter last year, based upon 382.6 million and 369.8 million shares outstanding, respectively. These earnings surpass the consensus analyst estimate of 11 cents per share. Compuware’s third quarter revenues were $450.6 million, compared to $495.4 million in the third quarter of the previous fiscal year. Net income including amortization expense was $29.8 million, while earnings per share including amortization expense were 8 cents.

During the company’s third quarter, software license fees were $125.7 million, compared to $86.8 million in the second quarter of fiscal 2002. Maintenance fees were $106.8 million versus $109.7 million during the second quarter of fiscal 2002. Revenue from professional services was $218.0 million, compared with $227.5 million in the previous quarter.

"The strong sequential growth in our software sales provides us with excellent momentum going into the fourth quarter," said Joe Nathan, President, Compuware Corporation. "We’re particularly pleased that our distributed products showed nearly 10 percent growth in new license fees over last quarter. As the calendar year progresses, we will continue integrating our products and services--delivering value to our customers through comprehensive solutions."

Third Quarter Fiscal Year 2002 Highlights

During the third quarter, Compuware:

Added Tommi A. White to its management team as Chief Operating Officer. White is responsible for directing the daily efforts of Compuware’s operating divisions and reports to Compuware President Joe Nathan. Before accepting this position, White spent nearly eight years at Kelly Services, most recently as Executive Vice President, Chief Administration and Technology Officer.
Announced and continued the implementation of a comprehensive products and services strategy for supporting the Microsoft .NET platform. Additional product and services support was also announced this quarter for IBM DB2 Universal Database and Oracle9i.
Sold its engineering services business to Kelly Services. This transition allows Compuware to place greater emphasis on its core services market of building, maintaining, enhancing and supporting software and systems that increase business productivity. The agreement sent nearly 400 industrial and manufacturing engineers to Kelly Services.
Introduced OptimalJ, a software product for increasing the productivity of Java 2 Enterprise Edition (J2EE) developers. OptimalJ simplifies J2EE development for novice programmers while freeing advanced developers from repetitive tasks.
Released product enhancements for OptimalView, QACenter Performance Edition, PointForward, DevPartner and QARun.
Earned awards for its work on the design of the Detroit Medical Center’s web site, http://www.dmc.org/. Compuware’s product for the effective capacity planning of networked software, Predictor, also earned Network World’s Blue Ribbon Award for best design tool.

Conference Call Information

Compuware will host a conference call to discuss these results at 5:00 p.m. Eastern Time (2200 GMT/UTC). Interested parties from the United States should call 877-459-8388. For international access, the conference call number is +1-712-271-3620. The password for the conference call is Compuware. A webcast and 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. Compuware employs more than 12,000 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/.