Item 2.05. Costs Associated with Exit or Disposal Activities.

As part of its on-going effort to reduce costs and in light of current economic conditions, Compuware Corporation (the "Company") reduced its workforce by approximately 250 employees (less than 5% of the Company's total workforce), primarily in its professional services organization. The reduction and notification to affected employees was substantially completed on February 10, 2009. The Company committed to proceeding with the reduction on February 10, 2009 when management finalized its decision to proceed and began communicating its decision to affected employees.

At this time, the Company estimates the costs to be incurred in connection with this effort to be approximately $1 million, nearly all of which is severance-related and will be a future cash expenditure.