Compuware Corporation Earnings Increase 50 Percent in Fourth Quarter

DETROIT--May 12, 2004--Compuware Corporation (NASDAQ: CPWR) today announced financial results for its fourth quarter and fiscal year ended March 31, 2004.

"These great results confirm that Compuware is in an outstanding position to achieve healthy, sustainable growth," said Compuware Chairman and CEO Peter Karmanos, Jr. "Compuware’s development, quality assurance and performance management solutions address the most pressing technical and business issues in the marketplace--and they do so in all of the environments most used by businesses today. Combined with our skilled services staff and integrated through Compuware IT Governance by Changepoint, Compuware’s solutions deliver unmatched IT value. Looking forward, we are convinced that the addition of Changepoint to our IT solutions portfolio will dramatically enhance our business prospects, allowing us to demonstrate directly to CIOs the unique, unrivaled results we can deliver to their organizations."

Fourth Quarter Fiscal 2004 Results

Compuware reports fourth quarter revenues of $337.7 million. Net income in the quarter was $33.9 million, compared to $21.4 million in the fourth quarter last year. Earnings per share (diluted computation) were 9 cents, compared to 6 cents in the same quarter last year, based upon 387.2 million and 379.2 million shares outstanding, respectively.

During the company’s fourth quarter, software license fees were $101.3 million, up more than 30 percent over the fourth quarter last year. Maintenance fees were $104.3 million, up 1.2 percent from the same quarter last year. Revenue from professional services was $132.2 million.

Fiscal Year 2004 Results

During the fiscal year ended March 31, 2004, revenues were $1.26 billion. Net income was $49.8 million for fiscal 2004. Earnings per share (diluted computation) were 13 cents, based upon 384.6 million shares outstanding.

During the year, software license fees were $296.6 million, and maintenance revenue was $408.2 million. Professional services fees for fiscal year 2004 were $559.8 million.

Fourth Quarter Fiscal Year 2004 Highlights

During the fourth quarter, Compuware:

Announced the acquisition of the products and technology of Covisint, LLC, the company whose solutions connect the global automotive industry.
Released version 3.1 of its popular OptimalJ development platform, which includes industry-leading support for Web Services security, a broader set of options for Compuware OptimalJ’s integrated testing environment--including testing support for BEA WebLogic Server and IBM WebSphere Application Server--and enhanced features for legacy integration.
Together with ComponentSource, the world’s largest marketplace and community for reusable software components and a Software Reuse Infrastructure Provider, announced a global distribution agreement. Through this agreement Compuware will provide tools that increase developer productivity and application quality to ComponentSource’s more than 600,000 J2EE and .NET customers.
Announced an independent research report conducted by The Middleware Company that revealed that model-driven, pattern-based development delivers productivity gains approaching 70 percent in the maintenance phase of the application life cycle.
Announced the general availability of Compuware DriverStudio 3.1, a suite of tools that accelerates the driver development life cycle and promotes the development of high-quality Windows device drivers. This product helps device driver developers write, debug, test and tune high-quality driver code that meet the strict quality standards for Windows Hardware Quality Labs certification to ensure device driver quality.
Announced the results of a study commissioned by Compuware and conducted by Forrester Consulting that surveyed 430 senior IT executives from large companies in the U.S. and Europe, focusing on how IT organizations approach performance management of their critical business applications. The study revealed that many IT organizations are reactive in solving performance problems.
Announced that its Testing and Integration Center (TIC) underwent an assessment against the Capability Maturity Model for Software and was rated at CMM Level 3. The TIC is Compuware’s internal quality assurance organization, responsible for testing the integration between Compuware products and product families, as well as demonstrating how Compuware’s products are used in a production environment.
Announced that Compuware DevPartner and Compuware OptimalJ were recognized and honored in SYS-CON Media’s 2003 Readers’ choice Awards--.NET Developer’s Journal and Java Developer’s Journal--for their contributions to the .NET and Java developer communities.
Announced that Micro-News Network, an emergency notification applications company, used Compuware OptimalJ to develop its flagship emergency alert application, SNAP™-Com EL, with a development time that was ten times faster than expected.
Announced that for the second consecutive year, DevPartner Studio 7.1 Professional Edition won a Software Development Productivity Award in the "Utilities" category.
Announced that Enlighten, an award-winning interactive design, development and consulting firm, selected Compuware OptimalJ to help its developers reduce J2EE application development time by automatically generating much of the code for a Hunter Douglas web application project.

Compuware Corporation
Compuware Corporation (NASDAQ: CPWR) is a world leader in delivering software and services that enable businesses to manage their enterprises and maximize the value of their IT assets. Compuware solutions accelerate the development, improve the quality and enhance the performance of business-driving applications. Founded in 1973, Compuware serves the world's leading IT organizations, including more than 90 percent of the Fortune 100 companies. Learn more about Compuware 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, including expectations about Changepoint, and are subject to risks and uncertainties. Risks and uncertainties about the Company are discussed in the Company’s reports filed with the Securities and Exchange Commission. You should refer to and 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.