* EPS excluding restructuring costs leap nearly 70 percent year-over-    year to 22 cents   * Quality Solutions divestiture nets gain of $52.4 million   * Software license fees of $40.5 million exceed analyst expectations 

DETROIT, July 23, 2009 (GLOBE NEWSWIRE) -- Compuware Corporation (Nasdaq:CPWR) today announced final financial results for its first quarter ended June 30, 2009.

Compuware reports first quarter revenues of $214.4 million, compared to $298.6 million in Q1 last year. First quarter earnings per share -- before restructuring charges -- were 22 cents, compared to 13 cents in Q1 last year, based upon 242.5 million and 261.1 million shares outstanding, respectively. On a GAAP basis, earnings per share were 21 cents compared to 13 cents last year.

First quarter net income -- before restructuring charges -- was $52.7 million compared to $35.2 million in the same period last year. On a GAAP basis, Compuware delivered net income of $51.1 million in Q1, compared to net income of $34.7 million in the same quarter last year.

During the company's first quarter, software license fees were $40.5 million compared to $61.4 million in Q1 last year. Maintenance fees were $111.1 million in Q1 compared to $126.5 million in the first quarter last year. Revenue from professional services in the quarter was $62.7 million, compared to $110.6 million in the same quarter last year.

"Compuware produced a solid start to the year in Q1," said Compuware President and Chief Operating Officer Bob Paul. "With improved year-over-year earnings, software license fees that exceeded expectations and a business model built to capitalize on our core solutions, Compuware is primed to meet its goals for increased profitability."

First Quarter Fiscal Year 2009 Highlights

During the first quarter, Compuware:

    * achieved an important milestone in its Business Service Delivery    strategy by completing an agreement for Micro Focus to acquire    assets from Compuware's Quality Solutions product line.   * continued to strengthen its position as the global leader in    application performance through new services, solutions--including    the company's flagship IT Service Management solution, Vantage 11--    and partner programs that overcome the end-to-end application    performance challenge, reduce costs and improve customer    satisfaction.   * announced that Compuware Vantage has a dominant share of the    growing End User Experience monitoring market.   * announced that Compuware Vantage's End User Experience monitoring    solution, received the Yphise Award for "Best End User Experience    Monitoring".   * received, for the second consecutive year, a "General Motors 2008    Supplier of the Year" award for its significant contributions to    GM's global product and performance achievements.   * unveiled a 12-month strategic roadmap for its IT Portfolio    Management solution, Changepoint, focused on enhancing usability,    easing implementation and ensuring user adoption.   * announced that, based on completeness of vision and ability to    execute, Gartner Inc. placed Compuware in the "leaders" quadrant of    the "Magic Quadrant for IT Project and Portfolio Management" report.   * announced that Changepoint, the company's market-leading IT    Portfolio Management solution, received the Yphise Award for "Best    Application and Service Portfolio Governance."   * helped customers more effectively manage Agile development efforts    by offering the Agile Accelerator, a pre-configured version of its    market-leading IT portfolio management solution, Changepoint.   * announced that its Covisint subsidiary signed a contract extension    with Daimler AG to continue providing access to critical business    information and applications for more than 50,000 of Daimler's    supplier users globally.   * announced that its Covisint subsidiary signed an agreement with the    American Medical Association to deploy an innovative health    information exchange solution for its 240,000 member physicians and    the physician population at large.   * announced that its Covisint subsidiary has partnered with Michigan    Association of Health Plans to improve collaboration between    physicians and healthcare plans.   * announced that its Covisint subsidiary was named a hosted Identity    and Access Management (IAM) market share leader by independent    analyst firm, Forrester Research, Inc.   * announced that the Association of Medical Directors of Information    Systems have joined forces to launch www.meaningfuluse.org, a    collaborative web site that gives the HIT community a single,    central location to collaborate and influence the definition    of "meaningful use."   * achieved placement on IDG's Computerworld list of the top    workplaces for information technology professionals. 

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the financial information included in and following this press release uses non-GAAP measures for EPS, net income and revenue. The non-GAAP revenue disclosure provides information on total products 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 to GAAP information is contained in the financial statements following this press release.

Compuware Corporation

Founded in 1973, Compuware provides software, experts and best practices to ensure applications work well and deliver business value. Our unique approach, Business Service Delivery, helps CIOs optimize end-to-end application performance for leading businesses around the world, including 46 of the top 50 Fortune 500 companies. Learn more at www.compuware.com.

The Compuware logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5950

Conference Call Information

Compuware will host a conference call to discuss these results at 5:00 p.m. Eastern time (21:00 GMT) today. To join the conference call, interested parties from the United States should call 800-230-1092. For international access, the conference call number is +1-612-288-0337. No password is required.

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 104766. 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.

                   COMPUWARE CORPORATION AND SUBSIDIARIES                  CONDENSED CONSOLIDATED BALANCE SHEETS                             (In Thousands)                                                  AS OF JUNE 30,                                        -------------------------------                                               2009               2008                                        --------------   --------------   CURRENT ASSETS:     Cash and cash equivalents           $    390,680     $    216,457     Investments                                                56,423     Accounts receivable, net                 379,771          479,861     Deferred tax asset, net                   41,231           45,806     Income taxes refundable                    3,793            4,189     Prepaid expenses and other current       assets                                   27,203           37,162                                        --------------   --------------             Total current assets             842,678          839,898                                        --------------   --------------    PROPERTY AND EQUIPMENT, LESS     ACCUMULATED DEPRECIATION AND     AMORTIZATION                              349,258          360,476                                        --------------   --------------    CAPITALIZED SOFTWARE, LESS     ACCUMULATED AMORTIZATION                   36,114           58,769                                        --------------   --------------    OTHER:     Accounts receivable                      217,207          266,509     Deferred tax asset, net                   32,493           35,520     Goodwill                                 341,841          356,026     Other                                     32,960           33,808                                        --------------   --------------             Total other assets               624,501          691,863                                        --------------   --------------    TOTAL ASSETS                          $  1,852,551     $  1,951,006                                        ==============   ==============   LIABILITIES AND SHAREHOLDERS' EQUITY    CURRENT LIABILITIES:     Accounts payable                    $     24,101     $     17,551     Accrued expenses                          74,193          108,428     Income taxes payable                      39,927           15,262     Deferred revenue                         398,624          444,705                                        --------------   --------------             Total current liabilities        536,845          585,946    DEFERRED REVENUE                           351,006          406,528    ACCRUED EXPENSES                            28,214           18,526    DEFERRED TAX LIABILITY, NET                 28,361           30,090                                        --------------   --------------             Total liabilities                944,426        1,041,090                                        --------------   --------------    SHAREHOLDERS' EQUITY:     Common stock                               2,378            2,560     Additional paid-in capital               626,421          634,885     Retained earnings                        279,951          252,430     Accumulated other comprehensive       income (loss)                              (625)          20,041                                        --------------   --------------             Total shareholders' equity       908,125          909,916                                        --------------   --------------    TOTAL LIABILITIES AND SHAREHOLDERS'    EQUITY                               $  1,852,551     $  1,951,006                                        ==============   ==============                  COMPUWARE CORPORATION AND SUBSIDIARIES           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               (In Thousands, Except Per Share Data)                                               THREE MONTHS ENDED                                                   JUNE 30,                                        -------------------------------                                              2009             2008                                        --------------   --------------  REVENUES:    Software license fees                $     40,546     $     61,442    Maintenance fees                          111,127          126,527    Professional services fees                 62,715          110,619                                        --------------   --------------             Total revenues                   214,388          298,588                                        --------------   --------------   OPERATING EXPENSES:    Cost of software license fees               3,949            6,090    Cost of maintenance fees                    8,956           11,994    Cost of professional services              58,901          103,822    Technology development and support         21,482           22,570    Sales and marketing                        53,148           61,327    Administrative and general                 40,130           41,144    Restructuring costs                         2,490              682    Gain on divestiture of product lines      (52,351)                                        --------------   --------------             Total operating expenses         136,705          247,629                                        --------------   --------------   INCOME FROM OPERATIONS                       77,683           50,959                                        --------------   --------------   OTHER INCOME (EXPENSES)    Interest income                             1,569            3,409    Other                                        (149)            (188)                                        --------------   --------------   OTHER INCOME, NET                             1,420            3,221                                        --------------   --------------   INCOME BEFORE INCOME TAXES                   79,103           54,180   INCOME TAX PROVISION                         28,056           19,448                                        --------------   --------------   NET INCOME                             $     51,047     $     34,732                                        ==============   ==============   DILUTED EPS COMPUTATION  Numerator:  Net income                 $     51,047     $     34,732                                        --------------   --------------  Denominator:    Weighted-average common shares      outstanding                              240,784          259,694    Dilutive effect of stock options            1,764            1,399                                        --------------   --------------    Total shares                              242,548          261,093                                        --------------   --------------  Diluted EPS                            $       0.21     $       0.13                                        ==============   ==============                COMPUWARE CORPORATION AND SUBSIDIARIES               CONSOLIDATED STATEMENTS OF CASH FLOWS                          (In Thousands)                                               THREE MONTHS ENDED                                                   JUNE 30,                                        -------------------------------                                             2009             2008                                        --------------   --------------  CASH FLOWS PROVIDED BY OPERATING    ACTIVITIES:    Net income                           $     51,047     $     34,732    Adjustments to reconcile net income      to cash provided by operations:     Gain on divestiture of product       lines                                   (52,351)     Depreciation and amortization             10,378           13,463     Property and equipment impairment                             662     Acquisition tax benefits                     880            1,311     Stock award compensation                   5,637            2,326     Deferred income taxes                      1,017            1,751     Other                                        (10)             295     Net change in assets and       liabilities, net of effects from       divestiture and currency       fluctuations:         Accounts receivable                  119,957           34,044         Prepaid expenses and other           current assets                       14,521           12,212         Other assets                          (2,339)           1,851         Accounts payable and accrued           expenses                            (23,061)         (42,527)         Deferred revenue                     (64,745)         (22,649)         Income taxes                          13,972           10,365                                        --------------   --------------             Net cash provided by               operating activities             74,903           47,836                                        --------------   --------------   CASH FLOWS PROVIDED BY INVESTING    ACTIVITIES:    Purchase of:     Property and equipment                    (1,674)          (2,384)     Capitalized software                      (4,034)          (2,788)    Net proceeds from divestiture of      product lines                             64,992    Investment proceeds                                         13,856                                        --------------   --------------             Net cash provided by               investing activities             59,284            8,684                                        --------------   --------------   CASH FLOWS USED IN FINANCING    ACTIVITIES:    Net proceeds from exercise of stock      options including excess tax       benefits                                  1,628            1,397    Contribution to stock purchase plans          579              934    Repurchase of common stock                (32,305)         (58,891)                                        --------------   --------------             Net cash used in financing               activities                      (30,098)         (56,560)                                        --------------   --------------   EFFECT OF EXCHANGE RATE CHANGES ON    CASH                                         8,479              554                                        --------------   --------------   NET INCREASE IN CASH AND CASH    EQUIVALENTS                                112,568              514   CASH AND CASH EQUIVALENTS AT BEGINNING   OF PERIOD                                  278,112          215,943                                        --------------   --------------   CASH AND CASH EQUIVALENTS AT END OF    PERIOD                                $    390,680     $    216,457                                        ==============   ==============                    COMPUWARE CORPORATION AND SUBSIDIARIES                          OPERATIONAL HIGHLIGHTS                      (dollar amounts in thousands)                         QUARTER ENDED                 QUARTER                    ------------------    YR-YR       ENDED     QTR-QTR                    JUNE 30,  JUNE 30,      %       MARCH 31,      %                      2009      2008     Change       2009      Change                    --------- --------- ---------   --------- ---------  License Fees:   Distributed     Product License     Fees    Vantage         $  9,358  $ 13,724   (31.8%)    $ 13,937    (32.9%)    Changepoint        1,316     3,104   (57.6%)       2,528    (47.9%)    Quality            8,154     6,177    32.0%        4,541     79.6%    Uniface            1,474     2,814   (47.6%)       3,287    (55.2%)    DevPartner         1,051     1,689   (37.8%)       1,069    (1.7%)                    --------  --------              --------   Total Distributed    Product License     Fees              21,353    27,508   (22.4%)      25,362    (15.8%)   Mainframe Product    License Fees      19,193    33,934   (43.4%)      30,066    (36.2%)                    --------  --------              --------  Total License    Fees               40,546    61,442   (34.0%)      55,428    (26.8%)   Maintenance Fees   111,127   126,527   (12.2%)     111,622    (0.4%)                    --------  --------              --------  Total Products    Revenue          $151,673  $187,969   (19.3%)    $167,050    (9.2%)                    ========  ========              ========   Total Mainframe    Products Revenue $ 99,585  $122,458   (18.7%)    $109,836    (9.3%)  Total Distributed    Products Revenue $ 52,088  $ 65,511   (20.5%)    $ 57,214    (9.0%)   Total Products    Revenue by    Geography    North America   $ 80,608  $ 99,328   (18.8%)    $ 87,228     (7.6%)    International   $ 71,065  $ 88,641   (19.8%)    $ 79,822    (11.0%)   Product Releases    Mainframe              4         8   (50.0%)           5    (20.0%)    Distributed            7         4    75.0%            8    (12.5%)   Total Costs of    Software    Products         $ 87,535  $101,981   (14.2%)    $ 85,330     2.6%   Deferred license    fees   Current          $ 55,961  $ 63,418   (11.8%)    $ 59,592    (6.1%)   Long-term        $ 47,323  $ 59,267   (20.2%)    $ 52,513    (9.9%)    Deferred during     quarter         $ 10,679  $ 16,727   (36.2%)    $ 27,288    (60.9%)   Recognized     during quarter  $ 24,385  $ 23,914    2.0%      $ 20,351     19.8%   Professional    Services    Professional      Services      Revenue        $ 62,715  $110,619   (43.3%)    $ 86,305    (27.3%)    Contribution      Margin             6.1%      6.1%                  9.2%    Billable      Headcount         1,650     2,980   (44.6%)       2,116    (22.0%)   Total Company   Headcount           4,275     6,099   (29.9%)       5,006    (14.6%)   Total DSO            159.4     144.6                 167.7  Total DSO (Billed)    58.4      67.0                  83.4                     COMPUWARE CORPORATION AND SUBSIDIARIES                           PRODUCTS COMMITMENTS                              (In Thousands)                                                   QUARTER ENDED                                        ------------------------------                                           JUNE 30,         JUNE 30,                                             2009             2008                                        --------------   --------------                                                          License revenue                        $     40,546     $     61,442                                                                Change in deferred license            (13,697)          (7,187)                                        --------------   --------------  License contracts entered into                           during period                               26,849           54,255                                        --------------   --------------                                                                                                                  Maintenance revenue                         111,127          126,527                                                                Change in deferred maintenance        (49,441)         (13,337)                                        --------------   --------------                                                          Maintenance contracts & renewals                         entered into during period                  61,686          113,190                                        --------------   --------------                                                                                                                  Total products commitments during                        period                                $     88,535     $    167,445                                        ==============   ==============   As Compuware continues to emphasize solution selling, deals are  becoming more complex, increasing the likelihood that software  transactions will be recognized ratably over the maintenance term.  Therefore to understand the health of Compuware's software business,  we believe it is important to also consider the amount of product  commitments during the reported periods.                   COMPUWARE CORPORATION AND SUBSIDIARIES                RECONCILIATION OF NON-GAAP INFORMATION                 (In Thousands, Except Per Share Data)                                                   QUARTER ENDED                                                    JUNE 30,                                        -------------------------------   Net income reconciliation:                 2009             2008                                        --------------   --------------         GAAP net income                  $     51,047     $     34,732         Restructuring costs, net of tax         1,607              437                                        --------------   --------------         Net income as adjusted           $     52,654     $     35,169                                        ==============   ==============    EPS reconciliation:         GAAP diluted EPS                 $       0.21     $       0.13         Restructuring costs, net of tax          0.01                                        --------------   --------------         Diluted EPS as adjusted          $       0.22     $       0.13                                        ==============   ==============   Compuware undertook restructuring actions in FY09 and FY10. Our  non-GAAP disclosures exclude these charges, primarily employee  termination benefits and facilities costs ( lease abandonments and  property and equipment impairment). We believe it is useful to   exclude these costs when evaluating overall performance. 

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 CONTACT:  Compuware Corporation            Press Contact:           Lisa Elkin, Vice President, Marketing and Communications           +1-313-227-7345 

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