Compuware Asks Court to Sanction IBM

DETROIT--August 18, 2004--Compuware Corporation (NASDAQ: CPWR) announced today that it has filed an emergency motion in its software piracy case against IBM. Compuware asked the court to levy severe sanctions and provide other relief against IBM for introducing critical evidence after the close of discovery. Specifically, the filing asks the U.S. District Court for the Eastern District of Michigan to order judgment in favor of Compuware on its claim that IBM stole Compuware’s software source code.

"We’re requesting a default judgment in the piracy portion of our case against IBM," said Thomas M. Costello, Jr., Compuware General Counsel. "Additionally, this last-minute discovery of what may or may not be true source code should not be allowed at trial. Compuware should also be reimbursed for its substantial efforts related to the Court’s July 2002 order that IBM produce the very source code that they have so suddenly found two years later."

Compuware originally brought suit against IBM in March of 2002 for theft of Compuware software. The Compuware suit also alleges that IBM is unfairly using its monopoly power in mainframe hardware and software products to compete unfairly in the software tools markets.

"In startling contrast to numerous sworn statements by its employees and lawyers, IBM has suddenly found critical source code more than two years after the Court ordered IBM to produce that code," said Costello. "The court ordered IBM to produce this code in July of 2002. IBM employees and its lawyers repeatedly claimed that this information did not exist. Introducing this evidence more than two years after the Court requested it and less than 90 days before the scheduled start of the trial is nothing but a last-ditch attempt to sandbag Compuware with additional burdens and delays."

Compuware Corporation v. International Business Machines

Compuware filed suit against IBM for theft of trade secrets, software piracy and antitrust violations in March 2002, after IBM had seemingly developed products competitive to Compuware’s in record time. These products were remarkable for their similarity to Compuware’s and for the whirlwind speed with which they were brought to market.

In early 2003, Compuware asked the Court for a Preliminary Injunction on IBM’s sale of the competing products. In part because there was not sufficient source code evidence, the Court ruled against Compuware’s request.

On August 11, 2004, in direct contrast to the sworn statements of its employees and the pleadings of its lawyers, IBM admits that the source code in question has apparently been simultaneously discovered at two separate facilities located on opposite sides of Australia.

"We’re eager to put our claims against IBM in front of a jury in November," concluded Costello.

For the Full Filing

Please visit http://www.compuware.com/pressroom/resources/3774_ENG_HTML.asp.

Compuware Corporation

Compuware Corporation (NASDAQ: CPWR) maximizes the value IT brings to the business by helping CIOs more effectively manage the business of IT. Compuware solutions accelerate the development, improve the quality and enhance the performance of critical business systems while enabling CIOs to align and govern the entire IT portfolio, increasing efficiency, cost control and employee productivity throughout the IT organization. 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.