Compuware Earns Eight Cents Per Share in Fiscal Year 2007 First Quarter

Earnings Per Share Increase 33 Percent From Previous Q1; Total Distributed Software License Fees Grow 15 Percent Year-over-year

DETROIT--July 20, 2006--Compuware Corporation (NASDAQ: CPWR) today announced financial results for its first quarter, which ended June 30, 2006.

"As expected, Compuware performed well to begin the fiscal year," said Compuware Chairman and CEO Peter Karmanos, Jr. "The company continues to expect its performance to accelerate significantly in the second half of the fiscal year, as its recent organizational changes take greater effect."

First Quarter Fiscal 2007 Results

Compuware reports first quarter revenues of $296.3 million. Net income was $29.3 million, compared to $24.6 million in the same quarter of fiscal 2006. Earnings per share (diluted computation) were eight cents compared to six cents in Q1 of fiscal 2006, based upon 377.5 million and 389.9 million shares outstanding, respectively.

During the company’s first quarter, software license fees were $67.5 million. Maintenance fees were $110.3 million, an increase of 2.7 percent from $107.4 million in the first quarter of fiscal 2006. Revenue from professional services in the quarter was $118.5 million.

First Quarter Fiscal Year 2007 Highlights

During the first quarter, Compuware:

Announced that the company’s Board of Directors authorized the repurchase of up to $125 million of the company’s Common Stock.
Announced that the company’s Board of Directors unanimously voted to amend the Compuware shareholder rights plan. These progressive amendments protect shareholder value and reflect current best-practices in corporate governance. Shareholders will vote on the amended plan by proxy or in person at the company’s 2006 Annual Meeting.
Signed a definitive agreement to acquire privately held SteelTrace of Dublin, Ireland for approximately $20 million in cash. SteelTrace aligns application delivery to business needs through a structured, visual approach to the management of enterprise application requirements.
Rebranded and introduced the newest version of SteelTrace as Optimal Trace ™, a business requirements management solution that helps IT organizations capture and manage true business requirements. Optimal Trace includes advances that enable easier deployment in modern, global organizations with distributed workforces.
Hosted the Compuware Partner Summit, 2006. The summit, focused on "innovation driving business growth," provided five comprehensive learning tracks that detailed partner and customer successes and highlighted collaboration between Compuware, its partners and their joint customers.
Formalized a relationship with HP to establish and staff an HP Test Factory. The facility will provide independent verification and validation support for a large HP development engagement and later expansion of the Test Factory to provide full testing services for various client engagements.
Hosted an executive roundtable to discuss the business challenges, inefficiencies and increasing costs of healthcare. The interactive, invitation-only event was keynoted by former Speaker of the House and founder of the Center for Health Transformation, Newt Gingrich.
Introduced Compuware Changepoint 11, a strategic enhancement to its IT Portfolio Management solution. Changepoint 11 introduces a series of breakthrough capabilities that allow IT organizations to dynamically align resources to meet changing business needs.
Announced that Compuware Changepoint was positioned in the Leader Quadrant of The Gartner Magic Quadrant for IT Project and Portfolio Management Applications, published June 22, 2006 and authored by Matt Light and Daniel B. Stang.
Showcased the company’s wide range of software and solutions that improve productivity for organizations using DB2 at the IDUG 2006 North America. Compuware DB2 solutions enable IT organizations to speed error-resolution, test mission-critical code and easily transition to new technologies.
Introduced the new version of its performance testing solution, Compuware QALoad 5.5. This new release extends Compuware’s history of delivering enterprise performance-testing capabilities to organizations by improving tester efficiency through automation and through enabling a collaborative approach to improving application quality.
Launched the new version of its QACenter Enterprise Edition functional testing solution, Compuware TestPartner 5.4. This release offers a tight functional testing integration with Microsoft Visual Studio 2005 Team System and support for the Microsoft .NET Framework 2.0.
Enhanced its application service management solution, Compuware Vantage, by introducing full-time monitoring and root cause analysis for .NET applications. These additions supplement Compuware Vantage’s already powerful support for Java applications and round out Compuware’s web services solution, enabling unique, end-to-end, transaction-level support for hybrid .NET and Java applications.
Announced at the Microsoft Tech-Ed 2006 Conference that it is showcasing several application delivery solutions that integrate with Microsoft technologies. These solutions deliver superior value to development, testing and operations teams that develop, deploy and manage Microsoft-based applications.
Achieved Ford Motor Company’s coveted Q1 2002 certification. Through this certification, Ford acknowledged Compuware as a preferred supplier that pays close attention to processes, improvement, quality of work and customer satisfaction.
Announced that eWEEK, a leading IT enterprise news magazine, named Compuware Vantage the winner of the IT Quality Assurance Tools category during the sixth-annual Excellence Awards ceremony held in Boston on May 23. Additionally during the quarter, DevPartner Studio, DevPartner Security Checker and QACenter Enterprise Edition won Productivity Awards in the 16th Annual Software Development Jolt Product Excellence Awards.
Announced that Hour Detroit readers voted Compuware Best Place to Work and Best Workplace Ambiance in the magazine’s annual Best of Detroit issue.
Earned placement on the DiversityInc Top 50 Companies for Diversity List.
Announced that Compuware DevPartner Studio has won the Best of Tech-Ed 2006 Award in the "Developer Tools" category.

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 (21:00 GMT). Interested parties calling from the United States should call 877-531-2986. For international access, the conference call number is +1-612-288-0318. A conference call replay will also be available at 800-475-6701 for United States callers and at 320-365-3844 for international callers. For more information, visit the Compuware Corporation Investor Relations web site 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.