Compuware Corporation Announces Final First Quarter Financial Results

DETROIT--July 26, 2007--Compuware Corporation (NASDAQ: CPWR) today announced final financial results for its first quarter ended June 30, 2007.

"Despite a poor first quarter, I continue to expect great things for Compuware this fiscal year," said Compuware Chairman and CEO Peter Karmanos, Jr. "Based on a detailed analysis, the company has confirmed that it has a serious sales execution problem. In response, we have worked very hard to develop a new sales model that will cost less and will be more agile in responding to the needs of the marketplace and in fixing the company’s problem."

First Quarter Fiscal 2008 Results

Compuware reports first quarter revenues of $279.4 million and net income of $189,000. Earnings per share (diluted computation) were break-even, based upon 305.6 million shares outstanding.

During the company’s first quarter, software license fees were $47.3 million. Maintenance fees were $113.7 million. Revenue from professional services in the quarter was $118.4 million.

The company will host a conference call at 5:00 p.m. Eastern time (21:00 GMT) today to discuss these results.

First Quarter Fiscal Year 2007 Highlights

During the first quarter, Compuware:

Announced that its industry-leading IT management solution, Changepoint, now offers prepackaged product and services that deliver a defined set of management capabilities in a defined timeframe and at a known cost. These new offerings—Changepoint Supply and Demand Accelerator and Rapid Path service--place IT organizations on a rapid path to achieving their ultimate goal: delivering maximum value to the business by effectively managing IT supply and demand.

Introduced Compuware Optimal™, an integrated suite of application delivery management solutions, including: application delivery management, business requirements management, project management, quality assurance and performance assurance.

Announced the introduction of Vantage Service Manager, a business service management solution that enables organizations to optimize IT service delivery in accordance with business needs.

Hosted the company’s third-annual Partner Summit, themed Partner Solution Success. The Summit featured comprehensive learning tracks in areas such as IT Portfolio Management, Application Delivery Management, Business Service Management and other high-growth market opportunities for Compuware partners.

Announced that Compuware Professional Services implemented a digital, filmless imaging system for Oakwood Healthcare, Inc. Oakwood physicians now have immediate access to patient diagnostic images from any network-connected PC, allowing collaboration of patient care anytime and anywhere.

Introduced its Trusted Identity Broker, an outsourcing solution from Compuware Covisint that centralizes, automates and streamlines the management of digital identities. Trusted Identity Broker makes federation--the exposing and accepting of identities across security domains--simple, fast and repeatable.

Announced the release of Changepoint 12, the latest version of its market-leading IT Portfolio Management solution.

Announced that LogicaCMG has combined its expertise in risk- and requirement- based testing for software quality assurance with Compuware’s extensive knowledge in developing enterprise QA solutions to create a 360 solution named Q-Talk. Q-Talk will help IT departments effectively communicate the importance, business impact and return on investment of software testing to business unit customers.

Announced the availability of the Compuware Application MIPS Management solution. The solution offers a proactive approach to identifying the root cause of excessive CPU and MIPS consumption.

Announced that the Georgia Department of Community Health will collaborate with Compuware Covisint to offer a statewide web-based program for processing Medicaid communications between the state and health care providers who choose to use the Covisint program.

Announced its inclusion in the Leader’s Quadrant of the Gartner Magic Quadrant for IT Project and Portfolio Management. The report evaluated more than 22 vendors on the completeness of vision and ability to execute.

Announced that the company has been positioned as the "Software Testing Tools Market Leader"--featuring both breadth and depth--by Ovum, a leading analyst firm. According to Ovum, the top test automation toolsets are now all part of a larger application life cycle management and/or quality management portfolio.

Announced that the company has partnered with Kraft Kennedy & Lesser, Inc. (KKL) to help ensure IT continuity and availability by proactively detecting and fixing IT system problems for KKL’s legal industry customers.

Introduced Compuware Vantage 10, a sophisticated service-management solution that enables IT organizations to manage application service from a business perspective.

Hosted a webcast, titled: Rationalize, Optimize, Modernize—Getting the Most From Your Mainframe Assets," featuring Gartner, Inc. The webcast shared strategies for IT executives to manage and modernize their mainframe applications.

Announced that Laura Fournier, Compuware Senior Vice President and Chief Financial Officer, earned Public Company CFO of the Year recognition in the first-annual Crain’s Detroit Business CFO of the Year Awards.

Announced that the company has been named to BZ Media’s fifth annual SD Times 100 list for the fifth consecutive year.

Announced that for the second consecutive year, Hour Detroit readers have voted Compuware "Best Place to Work and Best Workplace Ambiance" in the magazine’s annual Best of Detroit issue.

Compuware Corporation

Compuware Corporation (NASDAQ: CPWR) is a world leader in delivering software and services that enable businesses to manage their enterprises and maximize the value of their IT assets. Compuware solutions accelerate the development, improve the quality and enhance the performance of business-driving applications. 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 +1-612-332-0107.

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 875887. Additionally, investors can listen to the conference call via webcast by visiting 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.