Compuware Earns 21 Cents Per Share in Q4, 45 Cents Per Share in FY ‘07

Compuware Increases EPS More Than 20 Percent Year-over-year; Fiscal Year Total Revenues Grow for First Time in Seven Years

DETROIT--May 15, 2007--Compuware Corporation (NASDAQ: CPWR) today announced final financial results for its fourth quarter and fiscal year ended March 31, 2007. The company also announced that the Compuware Board of Directors has authorized management to extend the company’s 10b5-1 share repurchase plan for three months to purchase up to 16 million additional shares of common stock.

"Compuware posted some noteworthy accomplishments in FY ’07, including increases in total revenue and in earnings per share," said Compuware Chairman and CEO Peter Karmanos, Jr. "In terms of the company’s key growth-drivers, Compuware improved its total distributed products revenue by nearly 13 percent, and Compuware Covisint produced a 65 percent increase in revenue. In the fiscal year ahead, I will continue to lead the company in implementing its plans for aligning costs with the business, for improving operational results and for buying back stock."

Fiscal Year 2007 Results

During the fiscal year ended March 31, 2007, revenues were $1.21 billion. Net income was $158.1 million for fiscal 2007, up more than 10 percent from $143.0 million in fiscal 2006. Earnings per share (diluted computation) were 45 cents, an increase of more than 21 percent from 37 cents in fiscal 2006, based upon 351.0 million and 387.6 million shares outstanding, respectively.

During fiscal 2007, software license fees were $283.4 million. Maintenance revenue was $457.6 million in fiscal 2007, up from $433.6 million in fiscal 2006. Professional services fees for fiscal year 2007 were $472.0 million.

Fourth Quarter Fiscal 2007 Results

Compuware reports fourth quarter net income of $67.5 million on revenues of $313.0 million. Earnings per share (diluted computation) were 21 cents, based upon 319.3 million shares outstanding.

During the company’s fourth quarter, software license fees were $73.2 million. Maintenance fees were $117.7 million during the quarter, and fourth quarter revenue from professional services was $122.1 million.

Fourth Quarter Fiscal Year 2007 Highlights

During the fourth quarter, Compuware:

Acquired privately held Proxima Technology. Proxima’s Centauri product enables IT organizations to overcome one of their most prevalent challenges: the inability to offer a clear business view of service delivery.
Showcased Compuware Vantage and its Application Service Management capabilities at the LegalTech Conference. Compuware also announced that Reed Smith, one of the world’s largest law firms, implemented Compuware Vantage to proactively identify, resolve and prevent application performance problems.
Launched Compuware Test Factory, a comprehensive quality assurance solution designed specifically to create a more efficient approach for delivering software testing services. Compuware Test Factory provides outsourced testing service providers with a comprehensive and industrialized solution to help resolve a range of complex business challenges, including those driven by rapid growth and increased competitive pressures.
Announced with international IT services company Atos Origin the worldwide implementation of the Compuware Test Factory solution. The solution will roll out over the next three years to standardize testing tools, processes and procedures used by more than 20,000 Atos Origin employees worldwide. By using the Compuware Test Factory solution, Atos Origin will improve service quality, deliver cost reductions and enable faster and seamless transfer of activities to off-shore locations.
Completed an agreement with CIGNA HealthCare to use Compuware Covisint’s hosted IT infrastructure for standardizing and automating the exchange of clinical information between the carrier and its contracted health care providers.
Introduced Compuware Quality Management, which enables QA organizations to deliver higher-quality applications by arming those organizations with the tools they need to effectively implement and monitor their quality process. This solution helps organizations progressively mature and manage quality across the life cycle, accelerating the path to Quality Governance.
Introduced the company’s Application Auditing solution, which uses Compuware Hiperstation to address mainframe data and application security issues with internal, authorized users.
Announced the general availability of Compuware Uniface 9.1, which includes multiple enhancements that enable organizations to better and more effectively develop and deploy enterprise applications in virtually any environment, including Web, Windows, Unix or the Mainframe.
Announced that two of its application delivery solutions—Compuware DevPartner Studio and Compuware DevPartner SecurityChecker—were honored as top products of 2006 by CRN Magazine and by Tech Target’s SearchVB.com.
Announced that it earned placement on Black MBA Magazine’s "Top 50 Companies for Black MBAs to Work" list for the second consecutive year. Compuware placed 33rd on the list, the second-highest placement for a high-tech firm.

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 from the United States should call 800-230-1093. For international access, the conference call number is +1-612-288-0337.

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 865451. For more information, visit the Compuware Corporation Investor Relations web site at http://www.compuware.com/.

Certain statements in this release that are not historical facts, including those regarding the Company’s future plans, objectives and expected performance, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. While we believe any forward-looking statements we have made are reasonable, actual results could differ materially since the statements are based on our current expectations and are subject to risks and uncertainties. These risks and uncertainties are discussed in the Company’s reports filed with the Securities and Exchange Commission. Readers are cautioned to consider these factors when relying on such forward-looking information. The Company does not undertake, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.