CPWR

Compuware Corporation

We deliver value to businesses worldwide by providing software products, professional services and application services that improve the performance of information technology (“IT”) organizations. Originally founded in 1973 as a professional services company, we began to offer mainframe productivity tools for fault diagnosis, file and data management, and application debugging in the late 1970’s.
In the 1990’s, IT moved toward distributed and web-based platforms. Our solutions portfolio grew in response, and we now market a comprehensive portfolio of IT solutions across the full range of enterprise computing platforms that help:
• Develop and deliver high quality, high performance enterprise business applications in a timely and cost-effective manner.

• Measure, manage and communicate application service in business terms, and maintain consistent, high levels of service delivery.

• Provide executive visibility, decision support and process automation across the entire IT organization to enable all available resources to be harnessed in alignment with business priorities.
Additionally, to be competitive in today’s global economy, enterprises must securely share applications, information and business processes. We address this market need through our application services, which are marketed under the brand name “Covisint”. Our application services offerings provide a software-as-a-service platform that enables industries and business communities to securely integrate vital information and processes across users, business partners, customers, vendors and suppliers.
We operate in three business segments in the software and technology services industries: products, professional services and application services (see Note 13 of the Notes to Consolidated Financial Statements, included in Item 8 of this report).
For a discussion of developments in our business during fiscal 2009, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.
We were incorporated in Michigan in 1973. Our executive offices are located at One Campus Martius, Detroit, Michigan 48226-5099, and our telephone number is (313) 227-7300. Our Internet address is www.compuware.com. We make available in the investor relations section of our external web site, our Codes of Conduct and our Board committee charters, as well as copies of reports we file with the Securities and Exchange Commission as soon as reasonably practicable after we electronically file such reports. The information contained on our web site should not be considered part of this report.

OUR BUSINESS STRATEGY

Our business strategy is to focus on providing software, professional services and application services that deliver value to the largest users of information technology in the world. Our enterprise IT solutions are focused on providing a real return on investment for our clients by increasing the performance of the entire IT organization and enabling IT management to deliver maximum business impact in support of the organization’s strategic objectives.
Specifically, during fiscal 2009 we advanced our Compuware 2.0 initiative with our determination to focus our software business strategy on delivering superior end-to-end application performance, which we call Business Service Delivery, to capitalize on our market leadership position in end-to-end application performance to meet the growing and ever-more critical demand that applications deliver value back to the business. Compuware’s Business Service Delivery approach enables IT to move from a reactive and operations-oriented approach to one that is proactive and business-driven across both the distributed and mainframe environments. The divestiture of the Quality and DevPartner software products is a key part of the initiative to focus the software business on Business Service Delivery.
In addition, we advanced our Application Service business strategy with an increased focus on the healthcare market while maintaining customer satisfaction in the automotive industry. This focus resulted in several new key customer agreements, including one to provide the VIP Health Initiative with a collaborative network for the secure sharing of sensitive patient information and improved physician collaboration.
Further, we began implementing our strategy to have a smaller, more profitable Professional Services Business. The strategy going forward will be to focus on engagements where we can provide value that allows us to achieve specified margin targets.

EMPLOYEES
As of March 31, 2009, we employed 5,006 people worldwide, with 1,021 in product sales, sales support and marketing; 1,108 in technology development and support; 1,962 in professional services, 253 in application services and 662 in other general and administrative functions. Only a small number of our employees are represented by labor unions. We have experienced no work stoppages and believe that our relations with our employees are good. Our success will depend in part on our continued ability to attract and retain highly qualified, experienced and talented software developers, professional services staff and sales and marketing personnel.