Compuware Earns Ten Cents Per Share in Fiscal Year 2006 Third Quarter, Announces Organizational Changes

Distributed Products License Fees Increase 33 Percent Sequentially and Nearly 12 Percent Year-over-year; Fiscal 2006 Year-to-date Earnings Up Approximately 70 Percent

DETROIT--January 26, 2006--Compuware Corporation (NASDAQ: CPWR) today announced financial results for its third quarter, which ended December 31, 2005.

"Compuware generated solid profits in the third quarter and remains well ahead of its earnings for the previous fiscal year-to-date," said Compuware Chairman and CEO Peter Karmanos, Jr. "We have a very healthy business with great technicians and superb products. The company remains extremely well-positioned for the future," continued Karmanos, "but we must improve the consistency of our sales execution. With that in mind, Compuware is beginning to implement a number of organizational changes designed to improve sales and sales focus while increasing the reliability of our business results. Company management has planned carefully for these changes to minimize their impact on ongoing operations. We will continue to run a very efficient business, but no layoffs are planned."

Third Quarter Fiscal 2006 Results

Compuware reports third quarter revenues of $305.9 million. Net income for the third quarter was $37.7 million. Earnings per share (diluted computation) were 10 cents, based upon 388.3 million shares outstanding. During the company’s third quarter, software license fees were $83.3 million, and maintenance fees were $107.6 million. Revenue from professional services for the third quarter was $115.0 million.

Organizational Changes

Compuware also today announced the following, high-level organizational changes:

• Hank Jallos has been appointed President and Chief Operating Officer for Compuware Products. In this role, Hank will be responsible for the sales and maintenance of all Compuware products. Hank has served Compuware for nearly two decades in a variety of sales leadership roles, including those focused on the company’s largest customers. Before joining Compuware, Hank spent more than 16 years with Honeywell Information Systems.
  
  
• Bob Paul will retain his current role and responsibilities overseeing Covisint operations under the new title of President and Chief Operating Officer of Compuware Covisint. Bob joined Covisint in 2001 with a substantial background in turning around technology companies through focused strategy, sales and operational excellence. He led the of reinvention Covisint’s value proposition and technology, as well as the company’s acquisition by Compuware in 2004.
  
  
• Tommi White has been appointed President and Chief Operating Officer for Compuware Services. In this role, Tommi will be responsible for the sales and delivery of all Compuware services. Before joining Compuware in 2001, Tommi spent nearly nine years at Kelly Services, most recently as Executive Vice President, Chief Administration and Technology Officer. Tommi has also spent part of her extensive career at Automatic Data Processing as Division Vice President for Client Services and Operations.

"This reorganization will allow Compuware to take advantage of the unique strengths of its management team," said Compuware Chairman and CEO Peter Karmanos, Jr. "The tremendous talents and experience that Hank, Bob and Tommi bring to these roles will ensure greater focus, accountability and responsiveness to the needs of our customers."

Third Quarter Fiscal 2006 Highlights

During the third quarter, Compuware:

• Made a strategic, long-term commitment to the Eclipse Foundation by becoming an Eclipse Strategic Developer. As part of this commitment, Compuware will focus its efforts on application life cycle integration and tool interoperability as well as dedicating resources that will support efforts in the Eclipse Application Lifecycle Framework (ALF) project.
  
  
• Continued to strengthen its commitment to the Microsoft Windows platform. In addition to support of Microsoft Visual Studio 2005, Compuware plans to continue offering a unique combination of expertise, best practices and products to help IT organizations develop, test, manage and govern applications developed for the Windows platform.
  
  
• Extended its leadership position in ensuring outstanding end-user experience by introducing enhanced application service management solutions. The availability of Compuware Vantage 9.8 and a portfolio of related service offerings combine to offer unprecedented levels of application performance and availability.
  
  
• Announced the results of a recent study focused on the importance of delivering application service to the business. Compuware commissioned this Forrester Consulting-led study of 202 senior IT decision-makers. Among the findings, 88 percent of respondents agreed or strongly agreed that managing the service of applications is critical to the success of their business.
  
  
• Announced new versions of two of its DevPartner products---Compuware DevPartner Studio 8.0 and Compuware DevPartner Fault Simulator 1.5---at the launch event for Microsoft Visual Studio 2005. These new releases help accelerate application development and improve application quality through full integration with Microsoft Visual Studio 2005, enabling development teams to find and fix defects early in the life cycle, institutionalize best practices for improved quality and maximize developer productivity through expert development advice.
  
  
• Released enhancements to its application quality solutions, the Compuware Application Reliability Solution (CARS) and Compuware QACenter Enterprise Edition. These new releases offer organizations enterprise-level quality management through support for centralized test asset repositories, decentralized test management, collaboration-enhanced requirements analysis and optimized testing. Additionally, CARS has been integrated with Compuware’s IT governance and management solution, Changepoint, to provide senior IT management with an integrated view of project status and quality.
  
  
• Released the results of a new study conducted by Forrester Consulting and commissioned by Compuware, which detailed ROI benefits from implementing the Compuware Changepoint IT governance and management solution, including cost savings, improved resource utilization, increased project success rate and enhanced IT operational efficiency.
  
  
• Outlined a comprehensive approach for enabling IT organizations to more effectively address the growing data privacy challenge. The Compuware solution for protecting sensitive data includes an implementation methodology, enhanced versions of the Compuware File-AID product line for both mainframe and distributed platforms and professionals with the expertise to assist in the implementation process.
  
• Announced a new partnership with the not-for-profit Northwest Regional Data Center to host the Compuware Application Reliability Solution (CARS).
  
  
• Announced that Compuware DevPartner SecurityChecker won Software Test & Performance Magazine’s Testers Choice Award in the "Security Test Tool" category.
  
  
• Hosted the annual OJ.X technology conference--attended by more than 1,000 professionals--at its Detroit headquarters.
  
  
• Announced its Montreal-based operations-including the company’s NearShore Development Center-received a $5 million, three-year grant from the Government of Quebec for Compuware’s training program for technology employees.
  
  
• Achieved recognition as one of the 2005 101 Metropolitan Detroit’s Best and Brightest Companies to Work For.
  
  
• Earned the second-highest index score among the top 100 publicly held Michigan companies according to the 2005 Michigan Women’s Leadership Index. Compuware was named a "Most Valuable Player," honoring the company’s percentage of female officers and directors.

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

Compuware will host a conference call today to discuss these results at 5:00 p.m. Eastern Time (22:00 GMT). Interested parties from the United States should call 800-230-1074. For international access, the conference call number is +1-612-234-9960. The password for the conference call is Compuware.

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 is 802604. For more information, visit the Compuware Corporation Investor Relations web site at http://www.compuware.com/.

:: Compuware Press Contact Lisa Elkin, Vice President, Corporate Communications and Investor Relations, 313-227-7345, lisa.elkin@compuware.com