Compuware Boosts EPS to 15 Cents per Share in Fourth Quarter, 37 Cents per Share in Fiscal Year 2006

Company Grows Total Distributed Revenue Nearly 12 Percent for the Year, Establishes CEO Succession Plan

DETROIT--May 16, 2006--Compuware Corporation (NASDAQ: CPWR) today announced financial results for its fourth quarter and fiscal year ended March 31, 2006.

"I’m pleased that Compuware demonstrated robust earnings growth for the fiscal year," said Compuware Chairman and CEO Peter Karmanos, Jr. "The entire Compuware management team understands that we must use these solid results as a launching pad for delivering revenue and earnings growth in the fiscal year ahead.

"To ensure the company achieves these goals while planning for my succession," continued Karmanos, "the Compuware Board of Directors recently established the Office of the Chairman. Consisting of me, CFO Laura Fournier, President and COO of Products Hank Jallos and President and COO of Covisint Bob Paul, the Office of the Chairman will refine and successfully implement Compuware’s strategy for accelerating growth. Over time, the Board of Directors and the Office of the Chairman will work together to identify a potential candidate to assume the role of CEO."

Fiscal Year 2006 Results

During the fiscal year ended March 31, 2006, revenues were $1.2 billion. Net income was $143.0 million for fiscal 2006, increasing nearly 87 percent from $76.5 million in fiscal 2005. Earnings per share (diluted computation) were 37 cents, compared to 20 cents in fiscal 2005, based upon 387.6 million and 388.5 million shares outstanding, respectively.

During fiscal 2006, software license fees were $296.7 million. Maintenance revenue was $433.6 million in fiscal 2006, up from $425.3 million in fiscal 2005. Professional services fees for fiscal year 2006 were $475.1 million.

Fourth Quarter Fiscal 2006 Results

Compuware reports fourth quarter net income of $56.4 million on revenues of $309.5 million. Earnings per share (diluted computation) were 15 cents, based upon 382.3 million shares outstanding.

During the company’s fourth quarter, software license fees were $81.8 million. Maintenance fees were $107.7 million during the quarter, and fourth quarter revenue from professional services was $120.0 million.

Fourth Quarter Fiscal Year 2006 Highlights

During the fourth quarter, Compuware:

Announced that General Motors named Compuware Covisint a Tier 1 service provider as a part of GM’s 2006 IT re-sourcing initiative. Covisint will support business-to-business supply chain collaboration for more than 18,000 production and non-production suppliers, extending its proven B2B messaging and integration services capabilities to GM’s European, Asia-Pacific and Latin American suppliers.
Acquired privately held ProviderLink, of Cary, North Carolina. ProviderLink supports paper-based healthcare organizations in interacting electronically with organizations of higher technology sophistication.
Announced that Forrester Research recognized Compuware Changepoint as a leader in the Project Portfolio Management market. In the report, "The Forrester Wave: Project Portfolio Management, Q1 2006," Compuware Changepoint was cited for a number of strengths including its strong use of integration as well as strong resource, demand and project management capabilities.
With the Eclipse Foundation announced the creation of the Tools Services Framework (Corona) Project, to be led by Compuware. Project Corona will enable greater collaboration across the application life cycle for Eclipse users.
Increased its support for developing applications on the open-source Eclipse platform with version 4.1 of its OptimalJ Java development solution. The agile development capabilities immediately available in OptimalJ 4.1 empower IT teams to implement pragmatic model-driven development principles to rapidly deliver service-oriented and enterprise Java applications.
Announced that its IT Portfolio Management solution, Compuware Changepoint, earned the Yphise award for best Project Portfolio Management solution. In Yphise’s Software Product Assessment Report for Project Portfolio Management, Yphise rated the Compuware Changepoint solution ahead of products from CA, IBM and PlanView.
Introduced a series of 10 workshops held in partnership with Microsoft Corp. Designed for architects, development leads, security analysts and quality assurance analysts, the workshops convey best practices for writing secure code, identifying and ranking threats to applications and including security in the software development life cycle.
Introduced at the VSLive! Conference in San Francisco security solutions including DevPartner SecurityChecker 2.0 and a Security Assessment for ASP.NET. DevPartner SecurityChecker 2.0 offers full integration with Microsoft Visual Studio 2005, enabling development and testing teams to quickly locate and fix security vulnerabilities early in the application life cycle. Compuware’s Security Assessment for ASP.NET applications combines the proficiency of Compuware IT professionals with the strengths of DevPartner SecurityChecker, allowing IT and development staffs to accurately assess the security vulnerabilities of an ASP.NET application.

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/.

Certain statements in this press release and announcement may constitute forward-looking statements. These forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that may cause such forward-looking statements not to be realized and that could cause actual results to differ materially from Compuware's expectations in these statements. For more information about other risks that could affect the forward-looking statements herein, please see Compuware's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other filings made with the Securities and Exchange Commission. Compuware expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any changes in expectations, or any change in events or circumstances on which those statements are based, unless otherwise required by law.