Compuware Corporation Earns 11 Cents Per Share in Q3

Distributed Products License Fees Increase 10.5 Percent Year-over-year

DETROIT--January 25, 2007--Compuware Corporation (NASDAQ: CPWR) today announced financial results for its third quarter, which ended December 31, 2006. "Compuware generated strong results in the third quarter," said Compuware Chairman and CEO Peter Karmanos, Jr. "The company’s results featured solid year-over-year increases in maintenance and software license fees, particularly in the distributed area. We will continue to work hard to ensure that Compuware delivers in Q4."

Third Quarter Fiscal 2007 Results

Compuware reports third quarter revenues of $315.1 million, compared to $305.9 million in the third quarter of the previous fiscal year. In the quarter, Compuware produced net income of $36.5 million. Compuware earned 11 cents per share (diluted computation) in Q3, compared to ten cents per share in Q3 of fiscal 2006, based upon 343.1 million and 388.3 million shares outstanding, respectively.

During the company’s third quarter, software license fees were $86.0 million, compared to $83.3 million in the same quarter of fiscal 2006. Maintenance fees were $114.4 million, compared to $107.6 million in Q3 of the previous fiscal year. Professional services fees were $114.7 million, compared to $115.0 million in the third quarter last year.

Third Quarter Fiscal 2007 Highlights

During the third quarter, Compuware Corporation:

Announced that the Company’s Board of Directors had adopted a plan under rule 10b5-1 of the Securities and Exchange Act of 1934 to repurchase 34 million shares of its common stock. The Board of Directors also authorized a separate share repurchase of $200 million of Compuware’s common shares from time to time at the discretion of management.
Introduced a new version of its Compuware Strobe enterprise application performance solution, including new releases of Strobe, AutoStrobe and iStrobe.
Showcased the company’s Application Performance Assurance and Continuous Integrated Testing solutions, which improve quality and enhance performance of critical business applications throughout the development life cycle, at the STARWEST 2006 Conference. Introduced Compuware OptimalJ version 4.2, which helps Java developers ensure successful enterprise application development, from initial architecture all the way to deployment.
Announced at the Gartner Healthcare Summit the capabilities of Compuware Covisint to help healthcare payers and providers increase healthcare quality and efficiency through better IT practices. Compuware Covisint also earned the "Best Demonstration of Value/ROI" Award at the Summit, sponsored by Gartner Vision Events.
Announced that the Automotive Industry Action Group selected Compuware Covisint to support the technology needs of the Chinese automotive industry by delivering EDI technology training.
Formalized a strategic partnership between Compuware Covisint and Initiate Systems, Inc., developers of the healthcare-industry standard for enterprise master patient index.
Conducted a Global IT Executive Summit Series on Application Performance titled, "Ahead of the Curve: Optimizing Application and Business Performance," which examined strategies for consistently delivering applications that optimize business performance.
Conducted a global executive briefing series on IT portfolio and demand management titled, "Strategic Moves: Execute an IT Game Plan That Yields Results," which examined the challenge of maximizing the value of IT investments.
Affirmed at Project World and the World Congress for Business Analysts the company’s commitment to helping business analysts capture better requirements and collaborate with their stakeholders more effectively.
Earned recognition as one of the "Best Workplaces for Commuters" by the U.S. Environmental Protection Agency and the U.S. Department of Transportation for the many effective commuter programs the company provides for its employees.
Announced that two of its application delivery solutions, Compuware DevPartner SecurityChecker and Compuware DevPartner Studio, won Software Test & Performance Magazine Testers Choice Awards.
Announced its placement on the 2006 101 Metropolitan Detroit’s Best and Brightest Companies to Work For list, sponsored by the Michigan Business and Professional Association

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/.

Conference Call Information

The company will hold a conference call to discuss these results at 5:00 p.m. Eastern time (22:00 GMT) today. To join the conference call, interested parties from the United States should call 800-288-8961. For international access, the conference call number is +1-612-332-0335. No password is required.

A conference call replay will also be available. The United States replay number will be 800-475-6701, and the international replay number will be +1-320-365-3844. The replay passcode will be 849074. Additionally, investors can listen to the conference call via webcast by visiting the Compuware Corporation Investor Relations web site at http://www.compuware.com/.