Compuware Q3 Results Demonstrate ''Strength and Growth Potential,'' Earnings of 13 Cents Per Share

Compuware Increases Vantage and Changepoint License Fees, Total Distributed Software Products Revenue Year-over-year; Operating Cash Flow and Maintenance Fees Remain Robust

DETROIT--January 24, 2008--Compuware Corporation (NASDAQ: CPWR) today announced final financial results for its quarter ended December 31, 2007.

“Compuware achieved Q3 results that demonstrated both the strength and growth potential of the business,” said Compuware Chairman and CEO Peter Karmanos, Jr. “Specifically during Q3, the company delivered a dramatic increase in total product commitments, excellent operating cash flow, growing maintenance and improved year-over-year license fees in some of its most important product lines. I join Compuware employees around the world in maintaining my confidence in the future of the business, both in the near and the long-term.”

Third Quarter Fiscal 2008 Results

Compuware reports third quarter revenues of $309.3 million, compared to $315.1 million in the same quarter last year. Earnings per share--before restructuring charges--were 14 cents. On a GAAP basis, earnings per share were 13 cents, an increase of 18 percent from 11 cents in the same quarter last year, based upon 282.5 million and 343.1 million shares outstanding, respectively.

Compuware incurred $4.9 million in restructuring charges in the third quarter. In the first nine months of the fiscal year, Compuware incurred $39.6 million in restructuring charges.

Compuware’s third quarter net income--before restructuring charges--was $38.8 million, an increase of six percent from net income of $36.5 million in the same period last year. On a GAAP basis, Compuware delivered net income of $35.6 million in Q3, down slightly from Q3 of last year.

During the company’s third quarter, software license fees were $79.4 million, compared to $86.0 million in the same quarter last year. Maintenance fees were $120.0 million, compared to $114.4 million in Q3 last year. Revenue from professional services in the quarter was $109.9 million, compared to $114.7 million in the same quarter last year.

The company will host a conference call at 5:00 p.m. Eastern time (22:00 GMT) today to discuss these results.

Third Quarter Fiscal Year 2008 Highlights

During the Third Quarter, Compuware:

Modernized the Detroit Medical Center’s application portfolio by streamlining processes, reducing IT costs and improving patient safety and care. Through this partnership, Compuware also collaborated with the DMC to deliver an Electronic Medical Records (EMR) system for the automation of patients’ paper medical records.
Announced that Compuware Covisint’s Chief Security Officer, David Miller, testified before the United States Senate Judiciary Committee regarding “Electronic Prescribing of Controlled Substances: Addressing Health Care and Law Enforcement Priorities.” Miller outlined how proven technology developed by Covisint could help solve many problems associated with the paper-based prescribing of controlled substances.
Announced that Compuware Covisint earned its second consecutive “Best Demonstration of Value/ROI” Healthcare Innovation Award at the recent Gartner Healthcare Summit 2007. Covisint was also nominated for the third straight year for “Solution with Greatest Market Potential.”
Earned—for the second consecutive year—the Yphise award for best “IT Investment and Project Portfolio Management” for the company’s IT Portfolio Management solution, Compuware Changepoint.
Achieved recognition from Forrester Research, which named Compuware Changepoint as a leader in the Project Portfolio Management (PPM) market.
Announced that Conseco, a Fortune 500 insurance company, successfully deployed Compuware’s Metrics-based Management solution to ensure the best available quality for its sourced application development.
Launched the Compuware Uniface 9.2 Application Platform Suite. The Uniface enterprise application development solution extends multi-channel support to include mobile technology, support for SOA, web services and enterprise mash-ups.
Released Optimal Trace 5.0, the latest version of Compuware Optimal’s market-leading business requirements management solution.
Delivered a worldwide executive briefing series on balancing IT supply and demand, featuring top IT strategist presentations on best practices to deliver maximum business impact.
Released a survey in collaboration with the Ponemon Institute revealing that an overwhelming majority of organizations surveyed risk compromising critical information by using actual customer data for the development and testing of applications.
Released the results of a survey designed to help organizations better understand MIPS usage and MIPS management. The survey, commissioned by Compuware and fielded by Computerworld, revealed valuable details for IT leaders seeking information on increased MIPS consumption.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, this press release uses non-GAAP measures of net income, earnings per share and revenue. The net income and earnings per share disclosures on a non-GAAP basis excluded the impact of restructuring charges. The non-GAAP revenue disclosures provide information on total product commitments. Compuware management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Compuware's ongoing core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in operating and evaluating its business and as such has determined that it is important to provide this information to investors. A reconciliation of non-GAAP and GAAP earnings is continued in the financial statements following this release.

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/.