<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

    FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934
                    FOR THE FISCAL YEAR ENDED JUNE 30, 2001

   [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                     EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

           For the transition period from ____________ to ____________

                          Commission File Number 0-4096

                             COMSHARE, INCORPORATED
             (Exact name of registrant as specified in its charter)

           MICHIGAN                                           38-1804887
(State or other jurisdiction of                              (IRS employer
  incorporation or organization)                          identification number)

                 555 BRIARWOOD CIRCLE, ANN ARBOR, MICHIGAN 48108
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (734) 994-4800

        Securities registered pursuant to Section 12(b) of the Act: None

 Securities registered pursuant to Section 12(g) of the Act: Common Stock $1.00
                                                             Par Value Rights to
                                                             Purchase Preferred
                                                             Shares

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                            YES  [X]     NO   [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in a definitive proxy or information statement
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]

The aggregate market value of the Common Stock held by non-affiliates of the
Registrant as of August 31, 2001 based on $3.24 per share, the last sale price
for the Common Stock on such date as reported on the Nasdaq National Market(R),
was approximately $32,778,000.

As of August 31, 2001 the Registrant had 10,116,716 shares of Common Stock
outstanding.

                       DOCUMENTS INCORPORATED BY REFERENCE
<TABLE>
<CAPTION>
                                                                                 Part of Form 10-K Report
         Document                                                              into which it is incorporated
         --------                                                              -----------------------------
<S>                                                                            <C>
Portions of Proxy Statement for the                                                         III
2001 Annual Meeting of Shareholders
(The "2001 Proxy Statement")
</TABLE>

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                                   UNDERTAKING

The Company will furnish any exhibit to this report on Form 10-K to a
shareholder upon payment of 10(cent) per page for photo copying, postage and
handling expenses and upon written request made to:

                               Investor Relations
                             Comshare, Incorporated
                              555 Briarwood Circle
                               Ann Arbor, MI 48108


































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                                     PART I

ITEM 1. BUSINESS

     This Business section contains forward-looking statements that involve
uncertainties. Actual results could differ materially from those in the forward
looking statements due to a number of uncertainties, including, but not limited
to those discussed below, particularly in "Business - Uncertainties Related to
Forward Looking Statements."

GENERAL

     Comshare, Incorporated and its subsidiaries (collectively referred to as
"Comshare" or the "Company") develop, market and support management planning and
control application software. Management planning and control is the process
that encompasses planning, budgeting, financial consolidation, management
reporting and analysis. The Company's management planning and control
applications are designed to help management effectively implement its strategy.
The Company targets its products and services for chief financial officers and
the finance function across a broad range of industries, offering them software
solutions that will help them add value to their organizations and increase
their efficiency.

     The Company is focused on serving the emerging market for integrated
management planning and control software. The market for planning, budgeting,
financial consolidation and reporting applications has been served by point
solutions that the Company believes do not effectively support a management
process that should be highly integrated and is frequently iterative. Many
companies do not integrate their strategic planning with their budgeting and
operating planning processes, and find strategies are not effectively
implemented. Many companies use spreadsheets for budgeting, and face the
difficult task of maintaining complicated spreadsheet applications and the
accompanying data integrity problems. Despite the investments made in data
warehouse solutions and Enterprise Resource Planning ("ERP") systems, many
companies still have not fulfilled the need to provide broadly-deployed
financial and performance information to managers.

     Comshare's software is differentiated by its web-based architecture, its
breadth of enterprise management planning and reporting function, its use of
mainstream database technology, and its robust multi-dimensional analysis
capabilities. The Company's software products enable the enterprise-wide
integration of data from multiple data sources, complementing underlying ERP
systems. The Company delivers complete software solutions by providing
implementation, consulting, training and support services, in addition to its
software products.

BUSINESS STRATEGY

     The Company's objective is to be a leading software provider of management
planning and control applications. The key elements of the Company's strategy
include the following:

ESTABLISH COMSHARE AS A LEADER IN THE MANAGEMENT PLANNING AND CONTROL MARKET.

1.   Offer an integrated software solution for management planning and control,
     replacing the disparate systems for planning, budgeting, financial
     consolidation, management reporting and analysis. An integrated software
     solution eliminates the wasted time spent re-keying data, reconciling
     separate systems and the accompanying data integrity problems, freeing up
     finance staff time to focus on value-added activities. An integrated
     software solution also enables management to more quickly respond to
     changes in the business environment, to adjust plans, change tactics and
     reallocate resources.

2.   Provide web-architected software that has been designed to support
     enterprise-wide deployments. While the Company also offers client/server
     based software solutions, increasingly customers are adopting web-based
     solutions. The Company built an underlying architecture that fully supports
     web deployments on an enterprise basis. The advantages to the customer
     include lower cost of maintenance and deployment, because no software
     beyond a browser is required on the desktop. Historically, the Company has
     focused on mid to large-sized, complex organizations, so the underlying
     architecture was designed to be scaleable for enterprise-wide deployments.

3.   Offer customers their choice of mainstream databases underlying the
     applications. Increasingly, customers have standardized on a certain
     database technology and prefer to purchase applications that utilize that
     technology. Comshare provides multidimensional software solutions on both
     relational and OLAP database platforms.

4.   Differentiate Comshare products with best-of-breed financial functionality
     and analytical capability. Drawing upon years of experience in the business
     intelligence market, Comshare products offer rich product function and
     advanced


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     visualization features that enable managers to easily identify exceptions
     in large amounts of information. This allows management to plan and budget
     more effectively, analyze performance and improve decision-making.

5.   Distribute worldwide to a range of customers from medium-sized to the
     largest companies, through multiple channels. Customers in over 35
     countries have purchased Comshare products, and Comshare supports worldwide
     deployment by global companies through a network of direct and indirect
     channels.

PRODUCTS

     The Company offers management planning and control software applications
("MPC") designed for use by customers in a broad range of industries, primarily
targeting the finance organizations of large to medium-sized corporations.

     Comshare's software products are generally licensed to end-use customers
under non-exclusive perpetual license agreements. Software license fees for the
Company's software applications vary widely depending upon the product, platform
and number of users supported. In addition to the sale of the software license,
customers typically purchase product maintenance for the first year of the
license. Customers may continue product maintenance thereafter for an annual
fee, normally ranging from 15 to 20 percent of the license fee. In addition,
customers frequently purchase additional software to expand the number of users
for an application or to add additional application components.

     The Company currently offers MPC applications for planning, budgeting,
financial consolidation and management reporting and analysis: Comshare MPC
(formerly BudgetPLUS), Comshare Decision ("Decision"), and Comshare FDC ("FDC").
Customers can buy some or all depending on their needs. In addition, the Company
supports a number of legacy products.

1.  COMSHARE MPC

     Comshare's flagship application is Comshare MPC, a web-architected
planning, budgeting, management reporting and analysis application. Comshare MPC
is designed to improve the effectiveness of strategic planning and top-down
target setting, shorten budget cycles, reduce the time and cost of budgeting,
deliver financial information and improve management decision-making.

     Comshare MPC provides an integrated financial data repository that combines
budgeted, actual and forecasted financial information to enhance the integrity
and usability of the data. Easy ad-hoc analysis and reporting across the
enterprise is available to business managers and analysts, either through the
use of a web-browser or on a client/server basis.

     Data collection for budgeting and forecasting occurs in a secure
environment either through a web-browser or the use of Microsoft Excel
spreadsheets, enabling the budget process to be distributed out to business
managers, yet with a centrally administered database for easy consolidation and
reporting. Comshare MPC provides the ability to customize data entry screens;
load bulk transaction data; track multiple versions of budgeted, actual and
forecasted financial information; translate currencies; eliminate intercompany
transactions; perform consolidations; and quickly handle reorganizations.

     Comshare MPC also offers management reporting and analysis capabilities
that allow enterprise-wide reporting of actual, budget and forecasted
information. Because Comshare MPC is built using the Comshare Application
Architecture, end-users have the same robust advanced visualization and
proactive alerting features available to users of the Decision product,
described below.

     Customers have their choice of databases when licensing Comshare MPC, which
allows them to select the database that fits their technology standards.
Comshare MPC supports both relational and OLAP database technology platforms,
including Microsoft SQL Server, Oracle, IBM DB2 OLAP Server, and Hyperion's
Essbase.

     Comshare MPC is available in both web-based and client/server versions, and
customers may implement a mixed environment of both web and client/server.

2.  DECISION

     Decision is the latest generation in a long line of the Company's business
intelligence products that allow customers to develop customized reporting and
analysis applications.


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     Decision provides advanced development and analytical features for creating
customized OLAP reporting and analysis applications such as product and customer
profitability analysis, sales analysis, balanced scorecards and other
performance measurement applications.

     Decision capitalizes on the increased use of multi-dimensional analysis by
business professionals to solve business problems. Using multi-dimensional
analysis, business professionals view information in a way that is consistent
with their perspective on the underlying business (e.g., across time periods,
business measures, geographies, products and markets). Decision includes
software necessary to deliver an enterprise-wide reporting and analysis
application, including software which 1) gathers and consolidates data from
multiple, disparate data sources, 2) uses server-based technology to facilitate
computer-intensive functions such as sorting and ad-hoc calculations and 3)
provides analysis capabilities and front end presentation for end-users.

     Decision offers advanced visualization and proactive alerting capabilities
to help end-users focus on important exceptions in large amounts of information.
End-users can use this exception alerting capability to define the data to be
monitored and the acceptable data ranges that they want to be alerted on.

     The Company views the web as an important technology platform for the types
of applications that Decision supports, and Decision is available on both web
and client/server platforms. Decision supports Essbase, Microsoft SQL Server
Analysis Services, IBM DB2 OLAP Server databases, as well as other OLAP
databases that support the Microsoft OLE DB for OLAP standard.

3.  FDC

     FDC is a statutory consolidation and management reporting application that
collects and consolidates financial data from different general ledgers and
other sources within a multi-divisional or multi-location organization. It
produces consolidated financial reports for management, public and statutory
reporting. With FDC, customers can reduce their financial closing time and
provide financial results more quickly, thus freeing up time for improved
financial analysis.

     FDC offers the financial intelligence and control found in general ledgers.
Information can be integrated from multiple general ledger systems without
re-entering data. FDC handles currency translations, intercompany eliminations
and account reclassifications.

     A major strength of FDC is its ability to be distributed across multiple
geographically dispersed operations. This allows distributed operations to
collect, report and analyze their data, while making sure that information for
corporate financial consolidations is timely and accurate.

     A management reporting and analysis module for FDC provides both
client/server and web-enabled management reporting and analysis. This allows key
financial performance reporting and analysis to be broadly deployed to
management and business analysts, thus eliminating time-consuming custom
reports.

4.  LEGACY PRODUCTS

     Because Comshare has been in business for thirty-five years, the Company
has a number of older products that it continues to support. Comshare continues
to support Commander OLAP, the predecessor to Decision, older desktop EIS and
modeling products, third party databases, and System W and IFPS products for use
on mainframe computers. Customers use System W and IFPS for applications similar
to those developed with Decision, although the multi-dimensional database
resides on the mainframe rather than on the server. See "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations."

IMPLEMENTATION AND CONSULTING SERVICES

     Implementation and consulting services are offered for all of the Company's
software products and include application design and modification, installation
assistance, implementation and troubleshooting support.

     Comshare complements its services through partnership arrangements with
value added consultants and has a certification process to recognize consultants
qualified in the use of Comshare applications. The certification process is also
designed to help Comshare's customers receive quality service, support, training
and project oversight and to help Comshare monitor the services provided by its
certified consultants.

     In addition, distributors and resellers of the Company offer implementation
and consulting services for their direct customers, similar to the services
offered by the Company.

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SOFTWARE MAINTENANCE AND SUPPORT

     The Company provides customer telephone helpline support staffed with
experienced professionals. Customers under maintenance agreements receive
product enhancements and updates, bug fixes and access to Comshare's telephone
helpline and helpline web site. Maintenance customers pay an annual maintenance
fee, which is typically 15 to 20 percent of the software license fee.

CUSTOMER TRAINING

     Comshare offers a training program to customers and third party
consultants. Training classes are provided by the Company at customer sites and
at its local sales offices. The Company's training program is designed for
end-users and system support staff and includes a variety of training classes
covering software application use, application building and system
administration.

CUSTOMERS

     Comshare and its distributors are currently providing maintenance at over
2,350 corporate and public sector customer sites in 35 countries. Comshare's
diversified customer base includes many Fortune 1000 and Financial Times 1000
industrial companies as well as large and mid-sized companies in the
manufacturing, financial services, utility, and services industries, and many
governmental and other public sector organizations.

SALES AND MARKETING

     Comshare's products and services are sold on a worldwide basis by direct
sales operations, an extensive worldwide distributor network and a reseller
channel that targets mid-sized companies. Comshare distributors and resellers
leverage the Company's software and application expertise and offer presale and
postsale implementation, consulting, customer support and services.

     The Company sells and markets its software products and services in the
U.S., Canada and the U.K. through its direct sales organizations. Direct sales
operations are organized geographically.

     The Company has an extensive distributor network covering 41 countries not
directly served by the Company. The Company has selected established software
application vendors to act as distributors to market, implement and support
Comshare's products in their respective geographic areas. Revenue from the
Company's distributors was $14.8 million, or approximately 24% of total revenue,
in fiscal 2001.

     The Company has a group of 10 resellers that focus on sales in the middle
market enterprises in the US, UK and Canada.

     To generate sales, the Company conducts comprehensive marketing programs
that include direct mail, a corporate Web site, public relations, advertising,
seminars, trade shows, web marketing, and ongoing customer communication
programs. The sales cycle begins with the generation of a sales lead or request
for proposal from a prospect. After a lead is qualified, the Company's sales
force analyzes the prospect's needs and makes one or more presentations. After
obtaining a preliminary commitment, the Company often develops customized
demonstrations to illustrate how the Company's products will satisfy a
customer's specific needs. The sales cycle varies in length from customer to
customer, but typically ranges from six to nine months.

RESEARCH AND PRODUCT DEVELOPMENT

     The Company's product development strategies are to: (1) provide a suite of
integrated applications for management planning and control; (2) deliver the
integrated suite on a common application architecture; (3) deploy the
applications on industry standard databases; (4) employ Microsoft standards and
(5) differentiate Comshare products by their ease of implementation, deployment
and use.

     Management planning and control applications encompass a closed-loop set of
processes that enable an enterprise to plan, budget, execute, report, evaluate,
analyze and respond to strategic initiatives. Towards this end, Comshare is
currently developing and delivering a set of integrated budgeting and planning,
financial consolidation, and management reporting and analysis applications in
support of these closed-loop processes.


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     Comshare MPC is developed on the Comshare Application Architecture ("CAA").
This architecture is a multi-tiered design with a back-end database tier, an
application server tier consisting of an innovative set of application objects
and components and a client-side presentation tier. The CAA enables Comshare's
software to run on a variety of back-end databases and supports both
client/server and web desktops. Comshare MPC and Decision are fully web-enabled.
During fiscal 2001, FDC also was web-enabled for much of its data entry,
reporting and analysis functions.

     To broaden the market potential for Comshare MPC, the Company developed
relational technology versions that run on mainstream relational databases.

     All of Comshare's products run on Windows NT/2000 on the server and Windows
2000, Windows NT, and Windows 98 on the desktop. Comshare's web-based offerings
utilize Microsoft's Internet Information Server (IIS) and support both
Microsoft's Internet Server Application Programming Interface (ISAPI) and Active
Server Page (ASP) technologies. The Company plans to continue to focus on
Microsoft's platforms and to replace proprietary components over time with
Microsoft technologies.

     Comshare's applications are distinguished by their innovative guided
analysis capabilities that enable customers to quickly and easily identify
problem areas hidden within very large multi-dimensional databases.

     During the fiscal years ended June 30, 2001, 2000 and 1999, worldwide
internal research and product development expenses were (in thousands):
<TABLE>
<CAPTION>
                                                               2001           2000           1999
<S>                                                         <C>            <C>            <C>
Internal research and product development                   $   8,838       $  9,070       $  9,059
As a % of total revenue                                          14.1%          14.8%          14.2%
</TABLE>

     Internal research and product development was consistent as a percentage of
revenue over the past three years. The decrease in the dollar amount spent on
internal research and product development from fiscal 2000 to 2001 was primarily
due to a reduction in the use of third parties for development.

     The markets for the Company's products are characterized by rapid
technological advances, evolving industry standards, changes in customer
requirements and frequent introductions and enhancements of competitive
products. The Company's success and future financial performance will depend on
its ability to keep pace with these changes and to anticipate these changes as
they occur and to enhance its existing products and develop new products in a
timely and cost-effective manner. There can be no assurance that the Company
will be able to successfully accomplish future technological or product
transitions, that the Company will not experience significant delays in
developing new products or enhancements required to accomplish such transitions
or that the Company will have sufficient financial resources available to
finance such efforts. There can be no assurance as to the impact that any such
transition would have on the Company's revenue or profitability. In addition,
there can be no assurance that the Company's new products and enhancements will
adequately address the changing needs of the marketplace and achieve market
acceptance or that developments by others will not render the Company's products
obsolete or non-competitive.

     The foregoing statements regarding the Company's product development
efforts contain "forward looking statements" within the meaning of the
Securities Exchange Act of 1934, as amended. Actual results could differ
materially from those in the forward looking statements due to a number of
uncertainties, including, but not limited to, those described above and under
"Business - Uncertainties Relating to Forward Looking Statements."

INTELLECTUAL PROPERTY AND PROPRIETARY RIGHTS

     The Company's success is dependent on its proprietary technology. The
Company does not hold any material patents and seeks to protect its technology
primarily through trademarks, copyrights, employee and third party
non-disclosure agreements and trade secret laws, which afford only limited
protection.

     Comshare distributes its software products under software license
agreements that generally grant customers a non-exclusive license to use the
Company's products. The Company considers its software products to be valuable
and unique assets and actively attempts to protect them contractually, generally
by restricting usage to internal operations and prohibiting the unauthorized
reproduction or transfer to third parties. The Company also believes that the
nature of its customers and the provision of continuing maintenance and support
services reduce the risk of unauthorized reproduction.

     The Company has registered certain of its trademarks and copyrights. The
Company is the owner of various trademarks, including Comshare(R), Comshare MPC,
Comshare BudgetPLUS, Comshare Decision, Comshare EIS, Guided


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Analysis, Comshare FDC, The Decision Support Company(R), Overview and Comshare
Application Architecture, as well as various other trademarks associated with
its legacy products. The Company's software contains the statutory copyright
notices.

     The laws of some foreign countries do not protect the Company's proprietary
rights to the same extent as do the laws of the United States. In addition,
certain provisions of the Company's contracts prohibiting unauthorized
reproduction may be unenforceable under the laws of certain foreign countries.
There can be no assurance that the steps taken by the Company to protect its
proprietary rights will be adequate to prevent misappropriation of its
technology or development by others of similar or superior technology. Although
the Company believes that its products and technology do not infringe on any
existing proprietary rights of others, there can be no assurance that third
parties will not assert infringement claims in the future or that any such
claims will not require the Company to enter into license arrangements or result
in litigation, regardless of the merits of such claims. No assurance can be
given that any necessary licenses will be available or that, if available, such
licenses can be obtained on commercially reasonable terms. Should litigation
with respect to any such claims commence, such litigation could be extremely
expensive and time consuming.

LICENSED TECHNOLOGIES

     The Company licenses certain software programs and tools from third parties
and incorporates them into the Company's products. These licenses are
non-exclusive and provide for varying royalty payments and expiration dates. In
addition, the Company resells certain third party databases. The Company
believes that the inclusion of third party software programs and tools in its
products reduces product development risk and time to market.

     Examples of third party software tools that are either incorporated into or
used with Comshare's products include Hyperion Solutions Corporation's
("Hyperion") Essbase, Inxight's Hyperbolic Tree, Pervasive Software, Inc.'s
("Pervasive") Pervasive.SQL 2000 database, Strategic Mapping, Inc.'s Atlas View
SDK, Tidestone Technologies, Inc.'s Formula One, Advanced Visual Systems'
OpenViz, and Quadbase Systems, Inc.'s EspressChart.

     Comshare resells Hyperion's Essbase database in connection with Comshare's
Decision and Comshare MPC products. While Essbase sales do not represent a
significant percentage of the Company's license revenue, a significant
percentage of the Company's maintenance revenues involve products using Essbase.
Comshare's worldwide license to resell Essbase expires December 31, 2002,
although the license may be terminated earlier in the event of an uncured
material breach. The license agreement provides that Comshare and its
distributors may continue to maintain and support its customer base after
termination of the license agreement.

COMPETITION

     The markets for Comshare's software products are highly competitive and
characterized by continued change and rapid technological advancements. In
general, the Company competes principally on the basis of: (1) software
application utility, which includes the extent to which its product offerings
meet specific end-user needs; (2) functionality, which includes the breadth and
depth of features and functions, ease-of-use and deployment; (3) service and
support, which includes the range and quality of technical support, training and
consulting services; (4) vendor reputation; (5) product architecture, which
includes database platform, distributed/network architecture (such as web
support) and ease of integration with other applications; and (6) product
pricing in relation to perceived value. The Company believes it competes
favorably with respect to these factors, although it may be at a competitive
disadvantage against certain of its competitors because of their significantly
larger market presence and greater financial, technical, marketing and other
resources.

     The analytical applications software market is highly competitive, highly
fragmented and subject to rapid change and evolving industry standards. The
Company competes primarily with Adaytum Software, Inc. and Hyperion Solutions
Corporation.

     The Company also competes with a variety of additional software companies,
third party professional service organizations that develop custom software and
with internal information technology departments, which develop financial
analytic applications. Among the Company's current and potential competitors are
a number of large software companies, including ERP software developers,
developers of spreadsheets, database query and reporting tools, transaction
processing-based applications and database technologies, that may elect to
increase the financial analytic capabilities of their current products or that
may develop or acquire products that compete with the Company's products.
Increased competition could result in price reductions, reduced operating
margins and loss of market share. In addition, many of the Company's current and
potential competitors have significantly greater financial, technical, marketing
and other resources than the Company. As a result, they may be able to respond
more quickly to new or emerging technologies and changes in customer


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requirements, or to devote greater resources to the development, promotion and
sale of products than the Company. There can be no assurance that the Company
will be able to compete successfully against current and future competitors.

INTERNATIONAL OPERATIONS

     The Company derived 42.8%, 47.9% and 50.4% of its total revenue from
outside North America in fiscal 2001, 2000, and 1999, respectively, and expects
that revenue generated outside North America will continue to represent a
significant portion of the Company's total revenue. This international business
is subject to various risks inherent in international activities, including the
impact on the Company's operations of, and the burdens of complying with, a wide
variety of laws, regulations, rules and policies of local foreign governments,
such as those relating to currency controls, hiring and termination of
employees, import restrictions and the protection of proprietary rights.

     The Company's international operations also expose the Company to
constantly fluctuating currency rates. Currency fluctuations have in the past
adversely affected, and may in the future adversely affect, the Company's
reported revenue, expenses and shareholders' equity. The Company's international
sales are primarily denominated in foreign currencies. As a result, an increase
in the value of the U.S. dollar relative to foreign currencies has the effect of
reducing the Company's reported revenue and profits from international sales
denominated in such currencies. Conversely, a weakening in the value of the U.S.
dollar relative to foreign currencies has the effect of increasing the Company's
reported revenue and profits from international sales denominated in such
currencies. Currency exchange rate fluctuations can also result in gains and
losses from foreign currency exchange transactions. The Company, at various
times, has entered into forward exchange contracts to hedge exposures related to
foreign currency exchange transactions. Because the Company only selectively
hedges against certain large transactions that present the most exposure to
exchange rate fluctuations, the Company's results of operations will continue to
be impacted by fluctuations in foreign currency exchange rates, which at times
could be material. See "Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations" and Note 1 of the Notes to
Consolidated Financial Statements.

     For a description of certain financial information regarding the Company by
geographic area, see Note 10 of the Notes to Consolidated Financial Statements.

EMPLOYEES

     Comshare employed 340 full-time employees as of June 30, 2001 including:
116 in sales and marketing, 52 in consulting and implementation services, 74 in
research and product development and 98 in customer support and administration.
None of the Company's employees are represented by a collective bargaining
agreement, nor has the Company experienced any work stoppages. The Company
considers its relations with its employees to be good.

MISCELLANEOUS

     Compliance with federal, state and local laws and ordinances that regulate
the discharge of materials into the environment has not had, and is not expected
to have, a material effect upon the capital expenditures, earnings or
competitive position of Comshare.

UNCERTAINTIES RELATING TO FORWARD LOOKING STATEMENTS

     "Item 1. Business" and other parts of this Form 10-K Report contain
"forward-looking statements" within the meaning of the Securities Exchange Act
of 1934, as amended. Actual results could differ materially from those in the
forward looking statements due to a number of uncertainties, including, but not
limited to, those discussed in this section and in "Research and Product
Development," "Intellectual Property and Proprietary Rights," "Licensed
Technologies," "Competition" and "International Operations" above and in "Item
7. Management's Discussion and Analysis of Financial Condition and Results of
Operations - Market Sensitivity Analysis." Actual results could differ
materially from those in the forward looking statements due to a number of
uncertainties, including, but not limited to: the demand for the Company's
products and services; the size, timing and recognition of revenue from
significant orders; increased competition and pricing pressures from
competitors; the Company's success in and expense associated with developing,
introducing and shipping new products; new product introductions and
announcements by the Company's competitors; the level of interest and success of
the Company's distributors in marketing and selling the Company's products;
changes in Company strategy; product life cycles; the cost and continued
availability of third party software and technology incorporated into the
Company's products, including the impact of expiration of the license for
Essbase in December 2002; the impact of rapid technological advances, evolving
industry standards and changes in customer requirements, including the impact on
the Company's revenues of Microsoft's OLAP database; the overall competition for
key employees; cancellations of maintenance and support agreements; software
defects; changes in operating expenses; fluctuations in


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foreign exchange rates; the ability of the Company to generate sufficient future
taxable income or to execute available tax strategies required to realize
deferred tax assets; and economic conditions generally or in specific industry
segments. In addition, a significant portion of the Company's revenue in any
quarter is typically derived from non-recurring license fees, a substantial
portion of which is booked in the last month of a quarter. Since the purchase of
the Company's products is relatively discretionary and generally involves a
significant commitment of capital, in the event of any downturn in any potential
customer's business or the economy in general, purchases of the Company's
products may be deferred or cancelled. Further, the Company's expense levels are
based, in part, on its expectations as to future revenue and a significant
portion of the Company's expenses do not vary with revenue. As a result, if
revenue is below expectations, results of operations are likely to be materially
adversely affected.

ITEM 2.  PROPERTIES

     Comshare leases sales offices and general office space in 10 major cities
throughout the United States, Canada and the United Kingdom. Comshare's primary
leased locations are identified in the following table:

<TABLE>
<CAPTION>
                        Approximate                                              Lease
                          Area in                  Principal                  Expiration
   Location             Square Feet                Activity                      Date
   --------             -----------                --------                      ----
<S>                    <C>                <C>                              <C>
Ann Arbor,                   70,000       Headquarters,                     February 2005  *
  Michigan                                Administration, Sales,
                                          Marketing, Research
                                          and Product Development
                                          and Customer Support

London,                      34,000       Sales, Marketing                  January 2008
   England                                and Implementation
                                          Services
</TABLE>

*     Comshare has the option to cancel in February 2002.


ITEM 3.  LEGAL PROCEEDINGS

Not Applicable.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not Applicable.












                                       10
<PAGE>   11
                                     PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS

                           PRICE RANGE OF COMMON STOCK

     The Company's common stock is traded on the Nasdaq National Market(R) under
the symbol "CSRE."

     The following table sets forth, for the periods indicated, the high and low
per share closing sales prices for the Company's common stock as reported on the
Nasdaq National Market(R).

<TABLE>
<CAPTION>
                FISCAL YEAR                      MARKET PRICES
                                                 -------------
               ENDING JUNE 30                HIGH             LOW
               --------------                ----             ---
<S>                                        <C>             <C>
  2000   First Quarter                          3.50            2.75
         Second Quarter                         6.56            2.75
         Third Quarter                          6.50            3.50
         Fourth Quarter                         4.80            3.53

  2001   First Quarter                          5.75            4.13
         Second Quarter                         4.25            2.63
         Third Quarter                          4.00            2.53
         Fourth Quarter                         3.70            2.70

  2002   First Quarter                          3.49            3.00
         (through August 31, 2001)
</TABLE>



     At August 31, 2001, there were approximately 815 holders of record of the
Company's common stock.


                                 DIVIDEND POLICY

     The Company has not paid dividends on its common stock since incorporation.
It is the Company's present policy to retain earnings for use in the Company's
business. Accordingly, the Company does not anticipate that cash dividends will
be paid in the foreseeable future. The Company's credit agreement contains
covenants which prohibit the payment of cash dividends on the common stock. See
Note 3 of the Notes to Consolidated Financial Statements regarding restrictions
on the payment of dividends.













                                       11
<PAGE>   12

ITEM 6.  SELECTED CONSOLIDATED FINANCIAL DATA

     The selected financial data for the five fiscal years ended June 30 are
derived from the audited Consolidated Financial Statements of the Company. This
information should be read in conjunction with "Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations" and the
Consolidated Financial Statements and related Notes included elsewhere in this
annual report on Form 10-K.

<TABLE>
<CAPTION>
                                                                       FISCAL YEARS ENDED JUNE 30,
                                                   ------------------------------------------------------------------
                                                      2001         2000         1999         1998          1997
                                                                             (IN THOUSANDS)
<S>                                                <C>           <C>         <C>            <C>         <C>
CONSOLIDATED STATEMENT OF OPERATIONS DATA:

Revenue                                               $62,841       $61,323     $63,972      $87,203       $ 89,801
Loss from operations
   before restructuring and
   unusual charges                                       (224)         (363)     (2,985)      (4,034)       (19,727)
Loss from operations                                   (1,116)         (363)     (3,952)     (14,724)       (25,972)
Net income (loss)                                          83           679      (1,136)       5,266        (17,117)
   Per common share -
     Diluted EPS                                       $ 0.01        $ 0.07     $ (0.12)      $ 0.50        $ (1.75)
Average shares                                          9,865         9,664       9,700        9,903          9,770

<CAPTION>
                                                                               JUNE 30,
                                                   ------------------------------------------------------------------
                                                      2001         2000         1999         1998          1997
                                                                             (IN THOUSANDS)
<S>                                                <C>           <C>         <C>            <C>         <C>
CONSOLIDATED BALANCE SHEET DATA:

Cash & cash equivalents                               $24,106       $29,506     $32,212      $49,311       $ 11,823
Total assets                                           59,277        62,424      63,455       88,692         80,751
Long-term debt                                            164           599       1,198        1,434            343
Total shareholders' equity                            $31,664       $30,891     $31,266      $38,405       $ 31,959
Working capital                                       $24,326       $24,883     $24,454      $29,531       $   (965)

ADDITIONAL DATA:

Number of employees at year end                           340           334         353          405            579
</TABLE>


NOTES:  (1)    The loss from operations for the fiscal years ended June 30,
               2001, 1999, 1998 and 1997 includes restructuring and unusual
               charges of $892,000, $967,000, $10,690,000 and $6,245,000,
               respectively. See Note 2 of the Notes to Consolidated Financial
               Statements for information regarding restructuring and unusual
               charges.

         (2)   Net loss for the fiscal year ended June 30, 1999 includes a
               $1,102,000 income tax benefit, recognizing the availability of an
               income tax refund.

         (3)   Net income for the fiscal year ended June 30, 1998, includes an
               after-tax gain of $19,986,000 from the sale of the Company's
               Retail Business. The Retail Business accounted for approximately
               $17,800,000 of the Company's 1998 revenue.








                                       12
<PAGE>   13
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

RESULTS OF OPERATIONS

The following table sets forth for the periods indicated, certain financial data
as a percentage of total revenue:

<TABLE>
<CAPTION>
                                                                              FISCAL YEARS ENDED JUNE 30,
                                                                         2001             2000           1999
                                                                     -------------      ---------      ---------
<S>                                                                  <C>                <C>            <C>
REVENUE
   Software licenses                                                         35.3  %        38.2 %         36.4  %
   Software maintenance                                                      37.5           38.0           41.0
   Implementation, consulting and other services                             27.2           23.8           22.6
                                                                     -------------      ---------      ---------
TOTAL REVENUE                                                               100.0          100.0          100.0

COSTS AND EXPENSES
   Selling and marketing                                                     37.9           39.4           40.2
   Cost of revenue and support                                               38.9           35.7           37.9
   Internal research and product development                                 14.1           14.8           14.2
   General and administrative                                                 9.5           10.7           12.4
   Restructuring and unusual charges                                          1.4              -            1.5
                                                                     -------------      ---------      ---------
TOTAL COSTS AND EXPENSES                                                    101.8          100.6          106.2
                                                                     -------------      ---------      ---------

LOSS FROM OPERATIONS                                                         (1.8)          (0.6)          (6.2)

OTHER INCOME (EXPENSE)

   Interest income                                                            2.2            2.5            3.0
   Interest expense                                                             -           (0.1)          (0.1)
   Exchange loss                                                             (0.2)          (0.1)          (0.1)
                                                                     -------------      ---------      ---------
TOTAL OTHER INCOME                                                            2.0            2.3            2.8

INCOME (LOSS) BEFORE TAXES                                                    0.2            1.7           (3.4)

                                                                     -------------      ---------      ---------
Provision (benefit) for income taxes                                          0.1            0.6           (1.6)
                                                                     -------------      ---------      ---------
NET INCOME (LOSS)                                                             0.1  %         1.1 %         (1.8) %
                                                                     =============      =========      =========
</TABLE>







                                       13
<PAGE>   14
COMPARISON OF FISCAL YEAR ENDED JUNE 30, 2001 TO FISCAL YEAR ENDED JUNE 30, 2000

Revenues

<TABLE>
<CAPTION>
                                              TWELVE MONTHS ENDED      PERCENT
                                                   JUNE 30,            CHANGE
                                             -----------------------  --------
                                               2001         2000
                                               ----         ----
                                                 (in thousands)
<S>                                          <C>         <C>          <C>
MPC REVENUE
     Software licenses                        $ 17,714     $ 14,430      22.8 %
     Software maintenance                       13,967        7,740      80.5
     Implementation, consulting and
        other services                          15,871       12,977      22.3
                                             ----------   ----------

            TOTAL MPC REVENUE                 $ 47,552     $ 35,147      35.3 %
                                             ==========   ==========

LEGACY REVENUE
     Software licenses                        $  4,470     $  9,016     (50.4)%
     Software maintenance                        9,607       15,521     (38.1)
     Implementation, consulting and
        other services                           1,212        1,639     (26.1)
                                             ----------   ----------

            TOTAL  LEGACY REVENUE             $ 15,289     $ 26,176     (41.6)%
                                             ==========   ==========

TOTAL REVENUE
     Software licenses                        $ 22,184     $ 23,446      (5.4)%
     Software maintenance                       23,574       23,261       1.3
     Implementation, consulting and
        other services                          17,083       14,616      16.9
                                             ----------   ----------

            TOTAL REVENUE                     $ 62,841     $ 61,323       2.5 %
                                             ==========   ==========
</TABLE>


         Comshare's MPC suite of products is comprised of Comshare MPC (formerly
BudgetPLUS), FDC and Decision.

         The increase in revenue from the year ended June 30, 2000 was primarily
due to a 35.3% growth in MPC revenue, offset by a decline of 41.6% in legacy
revenue. MPC revenue was $47.6 million for the year ended June 30, 2001,
representing 75.7% of total revenue.

         The 5.4% decline in license fees reflects the decline in legacy
revenues. MPC license fees, which grew 22.8% from the year ended June 30, 2000,
represented 79.9% of total license fees for the year ended June 30, 2001. The
increase in MPC license fees was largely offset by a decline in legacy product
license fees of 50.4% from the year ended June 30, 2000 to the year ended June
30, 2001. MPC license fees were $17.7 million and $14.4 million for the fiscal
years ended June 30, 2001 and 2000, respectively. License fees in the Company's
direct operations, which include North America and the United Kingdom, grew 3.6%
to $15.2 million for the fiscal year ended June 30, 2001, primarily due to the
growth in MPC license fees. Direct license fee growth was slightly offset by the
decline in distributor license fees of 1.8% to $6.9 million for the same time
period, reflecting a decline in the Company's legacy products, which are
concentrated in the distributor operations.

         Software maintenance revenues increased 1.3% in the year ended June 30,
2001 due to the impact of the growth in MPC license fees. During the year ended
June 30, 2001, the Company experienced 80.5% growth in maintenance revenues for
the Company's MPC products to $14.0 million, or 59.2% of total maintenance.
Maintenance revenues for the Company's MPC products for the year ended June 30,
2000 were $7.7 million. The growth in MPC product maintenance reflected the
license fee growth of the MPC applications in the years ended June 30, 2001 and
2000. The increase in MPC maintenance revenues was offset by a decline in the
Company's older legacy products, which declined 38.1%, primarily due to
mainframe and desktop maintenance cancellations and continued customer migration
to other platforms.



                                       14
<PAGE>   15
         Implementation, consulting and other services revenues grew 16.9% for
the year ended June 30, 2001, compared to the year ended June 30, 2000,
primarily due to the growth in license fees in the Company's direct operations.
Implementation services revenue from direct operations grew 17.1% for the year
ended June 30, 2001. This growth was slightly offset by a decline in distributor
implementation services revenue. In addition, there were a number of extensive
custom applications which contributed to the growth in implementation services
revenue. During the year ended June 30, 2001, 92.9% of total implementation
services revenue was related to the MPC products. The Company experienced an
increase of 22.3% of revenue associated with implementation, consulting and
other services related to the Company's MPC products. Implementation, consulting
and other services revenues for MPC products were $15.9 million and $13.0
million for the fiscal years ended June 30, 2001 and 2000, respectively.

Expenses/Interest Income

         Total costs and expenses increased to $64.0 million from $61.7 million
for the fiscal years ended June 30, 2001 and 2000, respectively. The increase of
$2.3 million is primarily due to increased cost of revenue and support expenses,
and a restructuring charge of $0.9 million taken in the third quarter of fiscal
2001 which was related to a reduction in personnel costs and other expenses.

         Selling and marketing expenses decreased 1.7% to $23.8 million from
$24.2 million for the fiscal years ended June 30, 2001 and 2000, respectively.
The decrease was primarily a result of a reorganization of sales operations,
partially offset by an increase in promotional marketing costs.

         Cost of revenue and support expenses increased 11.9% to $24.5 million
from $21.9 million for the fiscal years ended June 30, 2001 and 2000,
respectively. The increase was attributable to increased costs associated with
third party implementations due to the increased level of services provided
during the period, offset by a reduction in database royalty expense resulting
from lower sales of Essbase.

         Internal research and product development expenses decreased 3.3% to
$8.8 million from $9.1 million for the fiscal years ended June 30, 2001 and
2000, respectively. Internal research and product development expenses, as a
percentage of total revenue, decreased to 14.1% from 14.8% for the same periods,
respectively, reflecting no significant change in the Company's product
development spending for financial applications.

         General and administrative expenses decreased 7.7% to $6.0 million from
$6.5 million for the fiscal years ended June 30, 2001 and 2000, respectively.
The decrease is attributable to continued cost reduction actions taken to lower
administration costs, combined with a reduction in the costs of third party
services.

         The Company recorded a $0.9 million restructuring charge in the third
quarter ending March 31, 2001. This charge reflects certain cost reduction
actions by the Company taken to reduce personnel costs and other expenses. The
restructuring charge included total staff reductions of 13 employees. Because of
planned investments in MPC products, the Company does not expect these cost
reduction actions to reduce the Company's total expenses.

         Interest income decreased 6.7% to $1.4 million from $1.5 million for
the fiscal years ended June 30, 2001 and 2000, respectively. Lower average cash
balances during fiscal 2001, combined with reduced interest rates, resulted in
this decrease in interest income for the year ended June 30, 2001.

COMPARISON OF FISCAL YEAR ENDED JUNE 30, 2000 TO FISCAL YEAR ENDED JUNE 30, 1999

Revenues

         Total revenue was affected by the sale of the Company's French and
German operations during the quarter ended December 31, 1998, and by the change
in the Company's product mix to its MPC applications from its legacy products.
To better reflect revenue from the Company's operations on a comparable basis,
the following table shows revenue for the fiscal years ended June 30, 2000 and
1999 reflecting the Company's French and German operations as distributors
during the fiscal year ended June 30, 1999.






                                       15
<PAGE>   16
<TABLE>
<CAPTION>
In thousands                              2000                                1999
                                          ----                                ----
                                                   % OF                            % OF           INCREASE
                                  REVENUE      TOTAL REVENUE       REVENUE     TOTAL REVENUE     (DECREASE)
                                  -------      -------------       -------     -------------     ----------
<S>                            <C>            <C>                <C>           <C>              <C>
License Fees                           $ 23.4           38.2%          $ 23.0           36.7%            1.7%
Maintenance                            $ 23.3           38.0%          $ 25.7           41.1%           (9.3%)
Implementation Services                $ 14.6           23.8%          $ 13.9           22.2%            5.0%
                               -------------------------------   -----------------------------  --------------

Total Revenue                          $ 61.3          100.0%          $ 62.6          100.0%           (2.1%)
</TABLE>


         The decrease in comparable revenue from the year ended June 30, 1999
was primarily due to a 35.0% decline in legacy revenue, largely offset by a
57.4% growth in MPC revenue. MPC revenue was $35.1 million for the year ended
June 30, 2000, representing 57.4% of total revenue.

         The 1.7% growth in comparable license fees was primarily due to an
increase in license fee revenues of the Company's MPC products of 114.9%, to
$14.4 million for the year ended June 30, 2000. MPC license fee growth primarily
reflected the growth of the Company's Budgeting product, particularly the
relational version. MPC license fees represented 61.5% of total license fees for
the year ended June 30, 2000. The increase in MPC license fees was largely
offset by a decline in legacy product license fees, which declined 44.8% for the
year ended June 30, 2000 versus the year ended June 30, 1999.

         On a comparable basis, software maintenance revenues decreased 9.3% in
the year ended June 30, 2000 due to the decline in legacy product maintenance.
During the year ended June 30, 2000, the Company experienced 20.3% growth in
maintenance revenues of the Company's MPC products to $7.7 million, or 33.0% of
total maintenance. The growth in MPC product maintenance reflected the license
fee growth of the MPC applications in the years ended June 30, 2000 and 1999.
The increase in MPC maintenance revenues was more than offset by a decline in
the Company's older legacy products, which declined 19%, primarily due to
mainframe and desktop maintenance cancellations and continued customer migration
to other platforms. On a comparable basis, legacy software maintenance
represented 67.1% of total software maintenance revenue for the year ended June
30, 2000 as compared to 75.2% for the year ended June 30, 1999.

         On a comparable basis, implementation, consulting and other services
revenues grew 5.0% primarily due to the growth in license fees in the Company's
direct operations. During the year ended June 30, 2000, 89.0% of total
implementation services revenue was related to the MPC products. The Company
experienced an increase of 41.3% of revenue associated with implementation,
consulting and other services related to the Company's MPC products.
Implementation, consulting and other services revenues for MPC products were
$13.0 million and $9.2 million for the fiscal years ended June 30, 2000 and
1999, respectively.

Expenses/Interest Income

         Total costs and expenses decreased to $61.7 million from $67.9 million
for the fiscal years ended June 30, 2000 and 1999, respectively. On a comparable
basis, total costs and expenses were $64.7 million for fiscal 1999. The decrease
of $3.0 million is primarily due to reduced marketing expenditures, facility
costs, decreased database royalties, and a restructuring charge taken in the
prior fiscal year. In fiscal 1999, the Company recorded a $1.0 million pre-tax
restructuring charge related to staff reduction as a result of the consolidation
of the Company's financial and marketing activities and the consolidation of
certain facilities.

         On a comparable basis, selling and marketing expenses decreased 5.8% to
$24.2 million from $25.7 million for the fiscal years ended June 30, 2000 and
1999, respectively. The decrease was primarily a result of reduced spending in
marketing and reduced costs associated with consolidating the worldwide sales
organization.

         On a comparable basis, cost of revenue and support expenses decreased
6.4% to $21.9 million from $23.4 million for the fiscal years ended June 30,
2000 and 1999, respectively. The decrease is attributable to decreased costs
associated with cost of sales and reduced database royalties in fiscal 2000.

         On a comparable basis, internal research and product development
expenses remained flat at $9.1 million for the fiscal years ended June 30, 2000
and 1999 and relatively flat as a percentage of total revenue. Internal research
and product development expenses, as a percentage of total revenue, increased to
14.8% from 14.4% for the same periods, respectively, reflecting no significant
change in the Company's product development spending for financial applications.



                                       16
<PAGE>   17
         On a comparable basis, general and administrative expenses remained
flat at $6.5 million for the fiscal years ended June 30, 2000 and 1999.

         Interest income decreased 21.1% to $1.5 million from $1.9 million for
the fiscal years ended June 30, 2000 and 1999. The Company had lower average
cash balances in fiscal 2000 as compared to fiscal 1999, resulting in decreased
interest income for the year ended June 30, 2000.

FOREIGN CURRENCY

     In fiscal 2001, 2000 and 1999, 42.8%, 47.9% and 50.4%, respectively, of the
Company's total revenue was from outside North America. Most of the Company's
international revenue is denominated in foreign currencies. Comshare recognizes
currency transaction gains and losses in the period of occurrence. As currency
rates are constantly changing, these gains and losses can, at times, fluctuate
greatly. The Company's $114,000 foreign exchange loss in fiscal 2001 principally
reflected the weakening of certain foreign currencies against the British pound
during the twelve months ended June 30, 2001. The Company had exchange losses of
$54,000 and $56,000 in fiscal 2000 and 1999, respectively, principally due to
the weakening of certain foreign currencies against the British pound.

     Foreign currency fluctuations in fiscal 2001, 2000 and 1999 impacted
operating income as currency fluctuations on revenue denominated in a foreign
currency were partially offset by currency fluctuations on expenses denominated
in a foreign currency. In fiscal 2001, the increase in total revenue, at actual
exchange rates, was $1.6 million less than at comparable exchange rates. The
increase in total expenses in fiscal 2001, at actual exchange rates, was $1.4
million less than at comparable exchange rates. As a result of the changes in
the foreign currency exchange rates, the decrease in net income before taxes in
fiscal 2001, at actual exchange rates, was $0.2 more than at comparable exchange
rates. In fiscal 2000, the decrease in total revenue, at actual exchange rates,
was $0.7 million greater than at comparable exchange rates. The decrease in
total expenses in fiscal 2000, at actual exchange rates, was $0.4 million
greater than at comparable exchange rates. As a result of the changes in the
foreign currency exchange rates, the increase in net income before taxes in
fiscal 2000, at actual exchange rates, was $0.3 million less than at comparable
exchange rates.

     Inflation did not have a material impact on the Company's revenue or income
from operations in fiscal 2001, 2000 or 1999.

INCOME TAXES

     The Company recorded a tax provision on pretax income in fiscal 2001, 2000
and 1999 at an effective rate of 35%. In fiscal 2001 and 1999, no tax benefit
was recognized on restructuring costs.

     Realization of deferred tax assets associated with the Company's future
deductible temporary differences, net operating loss carryforwards and tax
credit carryforwards is dependent upon generating sufficient taxable income
prior to their expiration. Although realization of the deferred tax assets is
not assured, management believes it is more likely than not that the deferred
tax assets will be realized through future taxable income or by using a tax
strategy currently available to the Company. On a quarterly basis, management
will assess whether it remains more likely than not that the deferred tax assets
will be realized. This assessment could be impacted by a combination of
continuing operating losses and a determination that the tax strategy is no
longer sufficient to realize some or all of the deferred tax assets.

     The foregoing statements regarding the realization of deferred tax assets
are "forward looking statements" within the meaning of the Securities Exchange
Act of 1934, as amended. See "Management's Discussion and Analysis of Financial
Condition and Results of Operations - Safe Harbor Statement" for discussion of
uncertainties relating to such statements.

     A comparative analysis of the factors influencing the effective income tax
rate is presented in Note 8 of the Notes to Consolidated Financial Statements.





                                       17
<PAGE>   18
LIQUIDITY AND CAPITAL RESOURCES

     At June 30, 2001, cash and cash equivalents were $24.1 million, compared
with cash and cash equivalents of $29.5 million at June 30, 2000. The decrease
in cash and cash equivalents was principally due to payment of fiscal 2001 and
prior years' restructuring related items, income tax payments, and other cash
used in operating activities, combined with increased days sales outstanding in
accounts receivable, due to the general slowdown in the economy.

     Net cash used in operating activities was $5.3 million in fiscal 2001
compared with $0.9 million in fiscal 2000. The increase in net cash used in
operating activities was primarily due to the payment of income taxes in fiscal
2001 (whereas fiscal 2000 benefited from a tax refund) and the payment of fiscal
2001 and earlier years' restructuring costs and related items.

     Net cash used in investing activities was $0.4 million in fiscal 2001,
compared to $0.5 million in fiscal 2000. The decrease in cash related to
investing activities was largely due to reduced capital expenditures in fiscal
2001. At June 30, 2001, the Company did not have material capital expenditure
commitments. In fiscal 2002, property and equipment purchases are expected to be
comparable to fiscal 2001.

     Net cash provided by financing activities was $0.4 million in fiscal 2001,
compared with net cash used in financing activities of $0.8 million in fiscal
2000. The increase in cash related to financing activities was principally due
to lower bank borrowings and capital lease obligations as of June 30, 2001,
compared to the prior year and increased stock purchases under the Company's
Employee Stock Purchase Plan.

     Working capital as of June 30, 2001 was $24.3 million, compared with $24.9
million as of June 30, 2000. The decrease in working capital was primarily due
to the decline in cash and cash equivalents combined with an increase in
accounts payable. These amounts were offset by an increase in accounts
receivable, which was due to the increase in revenue combined with increased
days sales outstanding, and a reduction in accrued liabilities due to payments
made on third quarter fiscal 2001 and prior year's restructuring reserves. Total
assets were $59.3 million at June 30, 2001, compared with $62.4 million at June
30, 2000. The decrease in total assets was primarily due to the decrease in cash
and cash equivalents during the fiscal year.

     The Company has a $10 million credit agreement which matures on September
30, 2003. Borrowings are secured by accounts receivable and the credit agreement
contains covenants regarding, among other things, earnings, leverage, net worth
and payment of dividends. Under the terms of the credit agreement, the Company
is not permitted to pay cash dividends on its common stock. Permitted borrowings
available as of June 30, 2001 under this credit agreement were $10 million, of
which $0.2 million was outstanding. Borrowings available at any time are based
on the lower of $10 million or a percentage of worldwide eligible accounts
receivable and cash. At June 30, 2001, the interest rate on borrowings
denominated in Japanese yen, which were used to hedge receivables, was 1.83%.

     The Company believes that the combination of present cash balances and
amounts available under credit facilities will be sufficient to meet the
Company's currently anticipated cash requirements for at least the next twelve
months. The foregoing statement is a "forward looking statement" within the
meaning of the Securities Exchange Act of 1934, as amended. The extent to which
such sources will be sufficient to meet the Company's anticipated cash
requirements is subject to a number of uncertainties including the ability of
the Company's operations to generate sufficient cash to support operations, and
other uncertainties described in "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Safe Harbor Statement."

MARKET SENSITIVITY ANALYSIS

     The Company is exposed to market risk from changes in foreign exchange and
interest rates. To reduce the risk from changes in foreign exchange rates, the
Company selectively uses financial instruments. The Company does not hold or
issue financial instruments for trading purposes.

FOREIGN CURRENCY

     The Company at various times denominates borrowings in foreign currencies
and enters into forward exchange contracts to hedge exposures related to foreign
currency transactions. The Company does not use any other types of derivatives
to hedge such exposures nor does it speculate in foreign currency. In general,
the Company uses forward exchange contracts to hedge against large selective
transactions that present the most exposure to exchange rate fluctuations. At
June 30, 2001 and June 30, 2000, the Company had forward contracts of
approximately $1.7 million and $5.6 million (notional amounts), respectively,
denominated in foreign currencies. The contracts outstanding at June 30,


                                       18
<PAGE>   19
2001 mature through September 14, 2001 and are intended to hedge various foreign
currency commitments due from the Company's distributors. Due to the short-term
nature of these financial instruments, the fair value of these contracts is not
materially different than their notional amounts at June 30, 2001 and 2000.

     Gains and losses on the forward contracts are largely offset by gains and
losses on the underlying exposure. The Company conducts business in
approximately six foreign currencies, predominately British pounds, the Euro and
Japanese yen. A hypothetical 10 percent appreciation of the U.S. dollar from
June 30, 2001 market rates would increase the unrealized value of the Company's
forward contracts by an immaterial amount and a hypothetical 10 percent
depreciation of the U.S. dollar from June 30, 2001 market rates would decrease
the unrealized value of the Company's forward contracts by an immaterial amount.
In either scenario, the gains or losses on the forward contracts are largely
offset by the gains or losses on the underlying transactions, and so would have
an immaterial impact on the Company's results of operations.

INTEREST RATES

     The Company maintains its cash and cash equivalents in highly liquid
investments with maturities of ninety days or less. The Company has the ability
to hold its fixed income investments until maturity, and therefore the Company
would not expect its operating results or cash flows to be affected to any
significant degree by the effect of a hypothetical 10 percent change in market
interest rates on its cash and cash equivalents.

SAFE HARBOR STATEMENT

     Certain information in this Form 10-K Report contains "forward looking
statements" within the meaning of the Securities Exchange Act of 1934, as
amended, including those concerning the Company's future results, new market and
business opportunities, strategy and product releases. Actual results could
differ materially from those in the forward looking statements due to a number
of uncertainties, including, but not limited to: the demand for the Company's
products and services; the size, timing and recognition of revenue from
significant orders; increased competition and pricing pressures from
competitors; the Company's success in and expense associated with developing,
introducing and shipping new products; new product introductions and
announcements by the Company's competitors; the level of interest and success of
the Company's distributors in marketing and selling the Company's products;
changes in Company strategy; product life cycles; the cost and continued
availability of third party software and technology incorporated into the
Company's products, including the impact of the expiration of the license for
Essbase in December 2002; the impact of rapid technological advances, evolving
industry standards and changes in customer requirements, including the impact on
the Company's revenues of Microsoft's OLAP database; the overall competition for
key employees; cancellations of maintenance and support agreements; software
defects; changes in operating expenses; fluctuations in foreign exchange rates;
the ability of the Company to generate sufficient future taxable income or to
execute available tax strategies required to realize deferred tax assets; and
economic conditions generally or in specific industry segments. In addition, a
significant portion of the Company's revenue in any quarter is typically derived
from non-recurring license fees, a substantial portion of which is booked in the
last month of a quarter. Since the purchase of the Company's products is
relatively discretionary and generally involves a significant commitment of
capital, in the event of any downturn in any potential customer's business or
the economy in general, purchases of the Company's products may be deferred or
cancelled. Further, the Company's expense levels are based, in part, on its
expectations as to future revenue and a significant portion of the Company's
expenses do not vary with revenue. As a result, if revenue is below
expectations, results of operations are likely to be materially, adversely
affected.


ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     See "Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations - Market Sensitivity Analysis."

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The financial statements and schedule filed herewith are set forth on the
Index to Consolidated Financial Statements and Schedule on page 23 and are
incorporated herein by reference.


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURES

Not applicable.


                                       19
<PAGE>   20
                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     The information required by this Item is incorporated herein by reference
to the Company's 2001 Proxy Statement under the captions "Election of Directors"
and "Further Information-Executive Officers."

ITEM 11.  EXECUTIVE COMPENSATION

     The information required by this Item is incorporated herein by reference
to the Company's 2001 Proxy Statement under the caption "Executive
Compensation."

ITEM 12.  SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     Information required by this Item is incorporated herein by reference to
the Company's 2001 Proxy Statement under the captions "Further
Information-Principal Shareholders" and "Further Information-Stock Ownership of
Management."


ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     Information required by this Item is incorporated herein by reference to
the Company's 2001 Proxy Statement under the captions "Certain Relationships and
Related Transactions."

                                     PART IV

ITEM 14.  EXHIBITS, CONSOLIDATED FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
          FORM 8-K

     (a) The following documents are filed as part of this Report:



         1.    Consolidated Financial Statements: The Financial Statements filed
               with this report are listed in the Index to Consolidated
               Financial Statements and Schedule, which appears on page 23.

         2.    Consolidated Financial Statement Schedule: The Financial
               Statement Schedule filed with this report is listed in the Index
               to Consolidated Financial Statements and Schedule, which appears
               on page 23.

         3.    The exhibits filed with this report are listed in the Exhibits
               which appears on page 46. The following are the Company's
               management contracts and compensatory plans and arrangements,
               which are required to be filed as exhibits to this Form 10-K
               Report:









                                       20
<PAGE>   21
EXHIBIT NO.                          DESCRIPTION

10.01    Benefit Adjustment Plan of Comshare, Incorporated, effective June 1,
         1986, as amended and restated on November 6, 1997 - incorporated by
         reference to Exhibit 10.01 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 1999.

10.02    First Amendment to the Benefit Adjustment Plan of Comshare,
         Incorporated - incorporated by reference to Exhibit 10.01 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 1999.

10.03    Second Amendment to the Benefit Adjustment Plan of Comshare,
         Incorporated - incorporated by reference to Exhibit 10.05 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.04    Comshare, Incorporated 1988 Stock Option Plan, as amended -
         incorporated by reference to Exhibit 10.21 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1990 and Exhibit 10.22
         to the Registrant's Form 10-Q Report for the quarter ended September
         30, 1994.

10.05    Third Amendment to Comshare, Incorporated 1988 Stock Option Plan, as
         amended - incorporated by reference to Exhibit 10.06 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.06    Stock Option Agreement, effective as of March 10, 1997, between
         Comshare, Incorporated and Daniel T. Carroll - incorporated by
         reference to Exhibit 10.22 to the Registrant's Form 10-Q Report for the
         quarter ended March 31, 1997.

10.07    Trust Agreement under the Benefit Adjustment Plan of Comshare,
         Incorporated, effective April 25, 1988, as amended - incorporated by
         reference to Exhibit 10.31 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 1993.

10.08    1994 Executive Stock Purchase Program of Comshare, Incorporated -
         incorporated by reference to Exhibit 10.19 to the Registrant's Form
         10-Q Report for the quarter ended September 30, 1994.

10.09    Employee Stock Purchase Plan of Comshare, Incorporated - incorporated
         by reference to Exhibit 10.20 to the Registrant's Form 10-Q Report for
         the quarter ended September 30, 1994.

10.10    First Amendment to Employee Stock Purchase Plan - incorporated by
         reference to Exhibit 10.01 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999.

10.11    Second Amendment to Employee Stock Purchase Plan - incorporated by
         reference to Exhibit 10.02 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999.

10.12    Third Amendment to Employee Stock Purchase Plan - incorporated by
         reference to Exhibit 10.03 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999.

10.13    1994 Directors Stock Option Plan of Comshare, Incorporated -
         incorporated by reference to Exhibit 10.21 to the Registrant's Form
         10-Q Report for the quarter ended September 30, 1994.

10.14    First Amendment to Directors Stock Option Plan - incorporated by
         reference to Exhibit 10.05 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999.

10.15    Second Amendment to Directors Stock Option Plan - incorporated by
         reference to Exhibit 10.07 to Registrant's Form 10-Q for the quarter
         ended March 31, 2001.

10.16    Comshare, Incorporated Change in Control Severance Agreement dated as
         of June 1, 1998, between Comshare, Incorporated and Dennis G. Ganster -
         incorporated by reference to Exhibit 10.19 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.

10.17    First Amendment to Comshare, Incorporated Change in Control Severance
         Agreement dated as of November 30, 1999, between Comshare, Incorporated
         and Dennis G. Ganster - incorporated by reference to Exhibit 10.03 to
         the Registrant's Form 10-Q Report for the quarter ended December 31,
         1999.


                                       21
<PAGE>   22
10.18    Comshare, Incorporated Change in Control Severance Agreement dated as
         of June 1, 1998, between Comshare, Incorporated and David King -
         incorporated by reference to Exhibit 10.21 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.

10.19    First Amendment to Comshare, Incorporated Change in Control Severance
         Agreement dated as of November 30, 1999, between Comshare, Incorporated
         and David King - incorporated by reference to Exhibit 10.01 to the
         Registrant's Form 10-Q Report for the quarter ended December 31, 1999.

10.20    Comshare, Incorporated Change in Control Severance Agreement dated as
         of June 1, 1998, between Comshare, Incorporated and Stanley Starkey -
         incorporated by reference to Exhibit 10.22 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.

10.21    First Amendment to Comshare, Incorporated Change in Control Severance
         Agreement dated as of November 30, 1999, between Comshare, Incorporated
         and Stanley R. Starkey - incorporated by reference to Exhibit 10.05 to
         the Registrant's Form 10-Q Report for the quarter ended December 31,
         1999.

10.22    Comshare, Incorporated Change in Control Severance Agreement dated as
         of February 9, 2001, between Comshare, Incorporated and Brian Hartlen -
         incorporated by reference to Exhibit 10.01 to the Registrant's Form
         10-Q Report for the quarter ended March 31, 2001.

10.23    Comshare, Incorporated Change in Control Severance Agreement dated as
         of February 16, 2001, between Comshare, Incorporated and Brian
         Jarzynski - incorporated by reference to Exhibit 10.02 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.24    Comshare, Incorporated 1998 Global Employee Stock Option Plan -
         incorporated by reference to Exhibit 10.25 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.

10.25    First Amendment to 1998 Global Employee Stock Option Plan -
         incorporated by reference to Exhibit 10.04 to the Registrant's Form
         10-Q Report for the quarter ended September 30, 1999.

10.26    Second Amendment to 1998 Global Employee Stock Option Plan -
         incorporated by reference to Exhibit 10.08 to the Registrant's Form
         10-Q Report for the quarter ended March 31, 2001.

10.27    Letter of Understanding, dated February 8, 2001, between Comshare,
         Incorporated and Norm Neuman, Jr., and Norman J. Neuman, Jr. Notices of
         Grant of Stock Options and Option Agreements - incorporated by
         reference to Exhibit 10.03 to the Registrant's Form 10-Q Report for the
         quarter ended March 31, 2001.

10.28    Kathryn A. Jehle Notices of Grant of Stock Options and Option
         Agreements - incorporated by reference to Exhibit 10.04 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.29    Summary of 1999 Senior Executive Incentive Plan - incorporated by
         reference to Exhibit 10.27 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 1998.

10.30    Summary of 2000 Senior Executive Incentive Plan - incorporated by
         reference to Exhibit 10.32 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 2000.

10.31    Summary of 2001 Senior Executive Incentive Plan - incorporated by
         reference to Exhibit 10.33 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 2000.

(b)      Reports on Form 8-K.

Since the end of the fiscal quarter ended March 31, 2001 the Registrant has not
filed any reports on Form 8-K.


                                       22
<PAGE>   23
                             COMSHARE, INCORPORATED

             INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE

<TABLE>
<CAPTION>

                                                                                              PAGE
                                                                                              ----
<S>                                                                                        <C>
Report of Independent Public Accountants                                                        24

Consolidated Statements of Operations for
    the Fiscal Years Ended June 30, 2001, 2000 and 1999                                         25

Consolidated Statements of Comprehensive Loss for
    the Fiscal Years Ended June 30, 2001, 2000 and 1999                                         26

Consolidated Balance Sheets as of June 30, 2001 and 2000                                     27-28

Consolidated Statements of Cash Flows for the
    Fiscal Years Ended June 30, 2001, 2000 and 1999                                             29

Consolidated Statements of Shareholders' Equity
    for the Fiscal Years Ended June 30, 2001, 2000 and 1999                                     30

Notes to Consolidated Financial Statements                                                   31-43



                                    SCHEDULE

II.    Consolidated Schedule of Valuation & Qualifying Accounts                                 44
</TABLE>












                                       23
<PAGE>   24
                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS












To Comshare, Incorporated:

     We have audited the accompanying consolidated balance sheets of COMSHARE,
INCORPORATED (a Michigan corporation) and subsidiaries as of June 30, 2001 and
2000, and the related consolidated statements of operations, comprehensive
loss, cash flows and shareholders' equity for each of the three years in the
period ended June 30, 2001. These financial statements and the schedule referred
to below are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements and schedule based on our
audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

     In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Comshare, Incorporated and
subsidiaries as of June 30, 2001 and 2000, and the results of their operations
and their cash flows for each of the three years in the period ended June 30,
2001 in conformity with accounting principles generally accepted in the United
States.

     Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedule listed in the accompanying
index is presented for purposes of complying with the Securities and Exchange
Commission's rules and is not part of the basic financial statements. This
schedule has been subjected to the auditing procedures applied in the audits of
the basic financial statements and, in our opinion, fairly states in all
material respects the financial data required to be set forth therein in
relation to the basic financial statements taken as a whole.



                                                   ARTHUR ANDERSEN LLP

Detroit, Michigan,
July 27, 2001.













                                       24
<PAGE>   25
COMSHARE, INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                               FISCAL YEARS ENDED JUNE 30,
                                                                           2001             2000              1999
                                                                       ------------     -------------     ------------
<S>                                                                   <C>              <C>               <C>
REVENUE
   Software licenses                                                    $   22,184       $    23,446       $   23,299
   Software maintenance                                                     23,574            23,261           26,228
   Implementation, consulting and other services                            17,083            14,616           14,445
                                                                       ------------     -------------     ------------
TOTAL REVENUE                                                               62,841            61,323           63,972

COSTS AND EXPENSES
   Selling and marketing                                                    23,750            24,169           25,724
   Cost of revenue and support                                              24,476            21,911           24,215
   Internal research and product development                                 8,838             9,070            9,059
   General and administrative                                                6,001             6,536            7,959
   Restructuring and unusual charges                                           892                 -              967
                                                                       ------------     -------------     ------------
TOTAL COSTS AND EXPENSES                                                    63,957            61,686           67,924

LOSS FROM OPERATIONS                                                        (1,116)             (363)          (3,952)

OTHER INCOME (EXPENSE)
   Interest income                                                           1,364             1,530            1,901
   Interest expense                                                             (6)              (68)             (63)
   Exchange loss                                                              (114)              (54)             (56)
                                                                       ------------     -------------     ------------
TOTAL OTHER INCOME                                                           1,244             1,408            1,782

INCOME (LOSS) BEFORE TAXES                                                     128             1,045           (2,170)
Provision (benefit) for income taxes                                            45               366           (1,034)
                                                                       ------------     -------------     ------------

NET INCOME (LOSS)                                                       $       83       $       679       $   (1,136)
                                                                       ============     =============     ============

SHARES USED IN BASIC EPS COMPUTATION                                         9,865             9,664            9,700
                                                                       ============     =============     ============

SHARES USED IN DILUTED EPS COMPUTATION                                       9,935             9,791            9,700
                                                                       ============     =============     ============

NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED EPS              $     0.01       $      0.07       $    (0.12)
                                                                       ============     =============     ============
</TABLE>



  The accompanying notes are an integral part of these consolidated statements.












                                       25
<PAGE>   26
COMSHARE, INCORPORATED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                            FISCAL YEARS ENDED JUNE 30,
                                                                       2001             2000             1999
                                                                   ------------     ------------     -------------
<S>                                                                <C>              <C>              <C>
Net income (loss)                                                   $       83       $      679       $    (1,136)

Other comprehensive loss:
   Currency translation adjustment                                        (295)            (702)             (848)
   Decrease (increase) in pension liability,
     net of tax                                                            198           (1,020)           (3,262)
                                                                   ------------     ------------     -------------

Other comprehensive loss, net of tax                                       (97)          (1,722)           (4,110)
                                                                   ------------     ------------     -------------

COMPREHENSIVE LOSS                                                  $      (14)      $   (1,043)      $    (5,246)
                                                                   ============     ============     =============
</TABLE>



  The accompanying notes are an integral part of these consolidated statements.


























                                       26
<PAGE>   27
COMSHARE, INCORPORATED
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                           AS OF JUNE 30,
                                                                       2001             2000
                                                                   ------------     ------------
<S>                                                               <C>              <C>
ASSETS

CURRENT ASSETS
   Cash and cash equivalents                                        $   24,106       $   29,506
   Accounts receivable, less allowance for
      doubtful accounts of $1,269 and $1,230
      as of June 30, 2001 and 2000, respectively                        19,541           17,328
   Deferred income taxes                                                   767              759
   Prepaid expenses and other current assets                             1,411            1,697
                                                                   ------------     ------------

      TOTAL CURRENT ASSETS                                              45,825           49,290


Computers and other equipment                                            6,716            8,508
Leasehold improvements                                                   2,649            2,774
                                                                   ------------     ------------
Property and equipment, at cost                                          9,365           11,282

Less - Accumulated depreciation                                          7,955            9,397
                                                                   ------------     ------------
   Property and equipment, net                                           1,410            1,885

Goodwill, net of accumulated
   amortization of $1,923 and $1,853 as of
   June 30, 2001 and 2000, respectively                                    977            1,047

Deferred income taxes                                                    7,355            6,445

Other assets                                                             3,710            3,757
                                                                   ------------     ------------

      TOTAL ASSETS                                                  $   59,277       $   62,424
                                                                   ============     ============
</TABLE>


        The accompanying notes are an integral part of these consolidated
                                balance sheets.












                                       27
<PAGE>   28
COMSHARE, INCORPORATED
CONSOLIDATED BALANCE SHEETS - (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE>
<CAPTION>
                                                                          AS OF JUNE 30,
                                                                       2001             2000
                                                                   ------------     ------------
<S>                                                                <C>              <C>
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable                                                 $    3,047       $    2,252
   Accrued liabilities -
      Payroll                                                            2,379            2,240
      Taxes                                                              1,370            1,154
      Other                                                              3,537            6,583
                                                                   ------------     ------------
          Total accrued liabilities                                      7,286            9,977

   Deferred revenue                                                     11,166           12,178
                                                                   ------------     ------------

      TOTAL CURRENT LIABILITIES                                         21,499           24,407

Long-term debt                                                             164              599

Other liabilities                                                        5,950            6,527
                                                                   ------------     ------------

      TOTAL LIABILITIES                                                 27,613           31,533

SHAREHOLDERS' EQUITY
   Capital stock:
      Preferred stock, no par value;
         authorized 5,000,000 shares; none issued                            -                -
      Common stock, $1 par value;
         authorized 20,000,000 shares; issued and outstanding
         10,104,626 shares as of June 30, 2001
         and 9,771,962 as of June 30, 2000.                             10,105            9,772
   Capital contributed in excess of par value                           39,244           38,790
   Retained deficit                                                     (7,724)          (7,807)
   Accumulated other comprehensive income:
      Pension liability, net of tax                                     (4,084)          (4,282)
      Cumulative translation adjustment                                 (5,877)          (5,582)
                                                                   ------------     ------------
      Total shareholders' equity                                        31,664           30,891
                                                                   ------------     ------------

      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                    $   59,277       $   62,424
                                                                   ============     ============
</TABLE>



        The accompanying notes are an integral part of these consolidated
                                balance sheets.







                                       28
<PAGE>   29
COMSHARE, INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                            FISCAL YEARS ENDED JUNE 30,
                                                                       2001             2000             1999
                                                                   ------------     ------------     -------------
<S>                                                                <C>              <C>              <C>
OPERATING ACTIVITIES
   Net income (loss)                                                $       83       $      679       $    (1,136)
   Adjustments to reconcile net income (loss) to
      net cash used in operating activities:
      Depreciation and amortization                                        906            1,288             1,982
      Changes in operating assets and liabilities:
          Accounts receivable                                           (2,580)          (2,929)            6,360
          Prepaid expenses and other assets                                305            3,040            (2,524)
          Deferred income taxes                                           (918)            (883)            2,142
          Accounts payable                                                 829           (3,647)           (6,303)
          Accrued liabilities                                           (2,541)             844            (7,827)
          Deferred revenue                                                (813)             735            (3,312)
          Other liabilities                                               (577)             (41)           (2,242)
                                                                   ------------     ------------     -------------
            Net cash used in operating activities                       (5,306)            (914)          (12,860)

INVESTING ACTIVITIES
   Payments for property and equipment                                    (267)            (505)           (1,578)
   Other                                                                  (170)               -               378
                                                                   ------------     ------------     -------------
            Net cash used in investing activities                         (437)            (505)           (1,200)

FINANCING ACTIVITIES
   Net repayments under debt agreements,
      capital lease agreements and notes payable                          (423)          (1,462)             (747)
   Common stock repurchased and retired                                      -                -            (2,835)
   Employee stock purchases                                                787              270               626
   Other                                                                     -              397               315
                                                                   ------------     ------------     -------------
            Net cash provided by (used in) financing activities            364             (795)           (2,641)

EFFECT OF EXCHANGE RATE CHANGES                                            (21)            (492)             (398)
                                                                   ------------     ------------     -------------

NET DECREASE IN CASH                                                    (5,400)          (2,706)          (17,099)

CASH AT BEGINNING OF PERIOD                                             29,506           32,212            49,311
                                                                   ------------     ------------     -------------

CASH AT END OF PERIOD                                               $   24,106       $   29,506       $    32,212
                                                                   ============     ============     =============

SUPPLEMENTAL DISCLOSURES:
   Cash paid for interest                                           $        6       $       49       $        88
                                                                   ============     ============     =============
   Cash paid for taxes                                              $      976       $      819       $     3,863
                                                                   ============     ============     =============
</TABLE>


  The accompanying notes are an integral part of these consolidated statements.









                                       29
<PAGE>   30
COMSHARE, INCORPORATED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
                                                                             FISCAL YEARS ENDED JUNE 30,
                                                                       2001             2000              1999
                                                                   ------------     -------------     ------------
<S>                                                                <C>              <C>               <C>
COMMON STOCK
------------
   Balance beginning of year                                        $    9,772       $     9,642       $   10,003
   Employee Stock Purchases                                                333               130              207
   1994 Executive Stock Purchase Program                                     -                 -               50
   Stock repurchased                                                         -                 -             (618)
                                                                   ------------     -------------     ------------
   Balance end of year                                                  10,105             9,772            9,642
                                                                   ------------     -------------     ------------

CAPITAL CONTRIBUTED IN EXCESS OF PAR VALUE
------------------------------------------
   Balance beginning of year                                            38,790            38,650           40,335
   Employee Stock Purchases                                                454               140              419
   1994 Executive Stock Purchases                                            -                 -              113
   Stock repurchased                                                         -                 -           (2,217)
                                                                   ------------     -------------     ------------
   Balance end of year                                                  39,244            38,790           38,650
                                                                   ------------     -------------     ------------

RETAINED DEFICIT
----------------
   Balance beginning of year                                            (7,807)           (8,486)          (7,350)
   Net income (loss)                                                        83               679           (1,136)
                                                                   ------------     -------------     ------------
   Balance end of year                                                  (7,724)           (7,807)          (8,486)
                                                                   ------------     -------------     ------------

ACCUMULATED OTHER COMPREHENSIVE INCOME
--------------------------------------
   Balance beginning of year                                            (9,864)           (8,142)          (4,032)
   Comprehensive income                                                    (97)           (1,722)          (4,110)
                                                                   ------------     -------------     ------------
   Balance end of year                                                  (9,961)           (9,864)          (8,142)
                                                                   ------------     -------------     ------------

LESS - NOTES RECEIVABLE
-----------------------
   Balance beginning of year                                                 -               398              551
   Payments on executive loans                                               -              (398)            (153)
                                                                   ------------     -------------     ------------
   Balance end of year                                                       -                 -              398
                                                                   ------------     -------------     ------------

      TOTAL SHAREHOLDERS' EQUITY                                    $   31,664       $    30,891       $   31,266
                                                                   ============     =============     ============
</TABLE>


  The accompanying notes are an integral part of these consolidated statements.









                                       30
<PAGE>   31
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.   SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY. Comshare, Incorporated (the "Company") develops, markets and
supports management planning and control applications software. The Company also
provides maintenance, training, consulting and support services. Comshare is
currently providing maintenance at over 2,350 corporate and public sector
customer sites. The Company markets its products through a direct sales force in
the United States, Canada and the United Kingdom and has an extensive
distributor network in 41 other countries. The Company was incorporated in
Michigan in February, 1966 and commenced operations at that time.

PRINCIPLES OF CONSOLIDATION. The consolidated financial statements include the
accounts of the Company and its subsidiaries, all of which are wholly owned. All
material intercompany accounts and transactions have been eliminated.

REVENUE. The Company's revenue consists of software licenses, software
maintenance and implementation services revenue. The Company recognizes software
license revenue in accordance with the Accounting Institution of Certified
Public Accountants' ("AICPA") Statement of Position ("SOP") 97-2 "Software
Revenue Recognition" and related interpretations. Software maintenance revenue,
whether bundled with a product license or priced separately, is recorded as
deferred revenue on the balance sheet when invoiced and is recognized over the
term of the maintenance contract. Implementation services revenue is recognized
as the services are performed.

EXPENSE CLASSIFICATION. Selling and marketing expenses primarily include
employee costs and travel costs, facilities expenses and advertising. Cost of
revenue and support includes personnel and other costs related to implementation
service revenue, customer support costs, direct cost of producing software and
royalty expenses for products licensed from others for use in the Company's
product offerings.

FOREIGN CURRENCY TRANSLATION. All assets and liabilities of the Company's
foreign operations are translated at current exchange rates and revenue and
expenses are translated at monthly exchange rates. Resulting translation
adjustments are reflected as a separate component of shareholders' equity.
Foreign currency transaction gains and losses are included in net income.

FINANCIAL INSTRUMENTS. The Company, at various times, enters into forward
exchange contracts to hedge certain exposures related to identifiable foreign
currency transactions that are relatively certain as to both timing and amount.
On July 1, 2000, the Company adopted Statement of Financial Accounting Standards
("SFAS") No. 133, as amended by SFAS No. 137 and SFAS No. 138 and has quantified
the impact, determining that there was no material effect on the financial
statements. The Company uses derivative financial instruments to manage its
exposures to fluctuations in foreign exchange rates. The use of these financial
instruments mitigates the Company's exposure to these risks with the intent of
reducing the risks and variability of the Company's operating results.
Initially, upon adoption of SFAS No. 133, and prospectively, on the date a
derivative contract is entered into, the Company designates the derivative as a
hedge. The ineffective portion of the hedge is recorded in earnings and
reflected in the consolidated statement of operations as exchange gain or loss
within other income (expense). The Company formally documents its hedge
relationships, including the identification of the hedging instruments and the
hedged items, as well as its risk management objectives and strategies for
undertaking the hedge transaction. At June 30, 2001 and 2000, the Company had
forward foreign currency exchange contracts of $1.7 million and $5.6 million
(notional amounts), respectively. The contracts outstanding at June 30, 2001
mature through September 14, 2001 and are intended to hedge various foreign
currency commitments due from foreign subsidiaries and the Company's
distributors. Due to the short-term nature of these financial instruments, the
fair value of these contracts is not materially different than their notional
amount at June 30, 2001 and 2000.

CASH AND CASH EQUIVALENTS. Cash and cash equivalents includes highly liquid
investments with maturities of ninety days or less.

COMPUTER SOFTWARE. Product upgrades for the Company's products have been
released regularly with an almost continuous product development cycle. Based on
these continuous product life cycles, the time between establishing
technological feasibility and general release to the public is very short. As a
result, software costs qualifying for capitalization are not significant.
Accordingly, the Company does not capitalize software development costs and does
not anticipate capitalization of software costs in future periods.





                                       31
<PAGE>   32
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


DEPRECIATION. The cost of depreciable assets is charged to operations on a
straight-line basis. Principal service lives for computers and other equipment
are three to five years. Leasehold improvements are amortized over the expected
life of the asset or term of the lease, whichever is shorter.

GOODWILL. Goodwill represents the unamortized cost in excess of fair value of
net assets acquired and is amortized on a straight-line basis over forty years.
On an ongoing basis, management reviews the valuation and amortization of
goodwill. As part of this review, the Company considers the value of future cash
flows attributable to the acquired operations in evaluating potential impairment
of goodwill. There was no adjustment to the Company's financial statements as a
result of this evaluation. In June 2001, the Financial Accounting Standards
Board issued Statements of Financial Accounting Standards No. 141, "Business
Combinations" ("SFAS 141") and No. 142, "Goodwill and Other Intangible Assets"
("SFAS 142"). SFAS No. 141 requires all business combinations initiated after
June 2001 to be accounted for under the purchase method of accounting. Under
SFAS No. 142, goodwill is no longer subject to amortization over its estimated
useful life. Companies will, however, be required to perform an annual
fair-value-based analysis to determine whether the value of goodwill has been
impaired. The Company will adopt SFAS No. 142 for the Company's fiscal year
beginning July 1, 2002. Although management has not fully assessed the impact of
these pronouncements, the Company will cease recognizing approximately $17,500
of quarterly goodwill amortization beginning in the first quarter of fiscal year
2003.

INCOME TAXES. The Company accounts for estimated income taxes under the
provisions of SFAS No. 109, "Accounting for Income Taxes." This statement
provides for an asset and liability approach under which deferred income taxes
are provided based upon enacted tax laws and rates applicable to the periods in
which the taxes become payable.

EARNINGS PER SHARE. Earnings per share of common stock is based on the daily
weighted average number of shares of common stock outstanding considering the
dilutive effect of outstanding stock options when appropriate.

STOCK PLANS. The Company accounts for stock-based compensation using the
intrinsic value method prescribed in Accounting Principles Board Opinion (APB)
No. 25 "Accounting for Stock Issued to Employees," and related interpretations.
Accordingly, compensation cost for stock options is measured as the excess, if
any, of the quoted market price of the stock at grant date over the amount an
employee must pay to acquire the stock. The Company has provided pro forma
disclosure of the fair value of stock options granted during fiscal 2001, 2000
and 1999 in accordance with the requirements of SFAS No. 123, "Accounting for
Stock-Based Compensation." See Note 5 of Notes to Consolidated Financial
Statements.

ACCOUNTING FOR PENSIONS. The Financial Accounting Standards Board has issued
SFAS No. 132 "Employers' Disclosures about Pensions and Other Post-retirement
Benefits," which requires additional information on changes in benefit
obligations and fair values of plan assets. See Note 7 of Notes to Consolidated
Financial Statements.

USE OF ESTIMATES. The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the period. Actual results may differ from these estimates.

RECLASSIFICATIONS. Certain amounts in the 1999 and 2000 financial statements
have been reclassified to conform with 2001 presentations.






                                       32
<PAGE>   33
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


2.   RESTRUCTURING AND UNUSUAL CHARGES

     The Company recorded a $0.9 million restructuring charge in the third
quarter of fiscal 2001. This charge reflected certain cost reduction actions by
the Company, taken to reduce personnel costs and other expenses. The
restructuring charge included total staff reductions of 13 people. At June 30,
2001, $0.6 million of accruals were remaining of this charge and $1.4 million of
accruals were remaining from this charge and prior year restructuring charges.
Of this $1.4 million, $0.4 million is related to facilities and the remaining
amounts are related to employee severance agreements.

     At June 30, 2000, the Company had $1.3 million of accruals remaining that
related to prior fiscal year restructuring charges. Of this, $0.9 million is
related to facilities and the remaining amounts are related to employee
severance agreements.

     In fiscal 1999, the Company recorded a $1.0 million pre-tax charge for
restructuring related to the consolidation of the Company's financial and
marketing activities and the consolidation of certain facilities. The
restructuring charges included total staff reductions of 14 employees.


3.   BORROWINGS


     The Company has a $10 million credit agreement which matures on September
30, 2003. Borrowings are secured by accounts receivable and the credit agreement
contains covenants regarding among other things, earnings, leverage, net worth
and payment of dividends. Under the terms of the credit agreement, the Company
is not permitted to pay cash dividends on its common stock. Permitted borrowings
available as of June 30, 2001 under the credit agreement were $10 million, of
which $0.2 million was outstanding. At June 30, 2000, $0.6 of the permitted
borrowings available were outstanding. Borrowings available at any time are
based on the lower of $10 million or a percentage of worldwide eligible accounts
receivable and cash. The interest rate on borrowings denominated in Japanese
yen, which was used to hedge receivables, was 1.83% and 2.04% for fiscal years
ended June 30, 2001 and 2000, respectively.





















                                       33
<PAGE>   34

COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


4.   SHAREHOLDERS' EQUITY

PREFERRED STOCK

     The Board of Directors has the authority to issue up to 5,000,000 shares of
no par value preferred stock. The shares can be issued in one or more series
with full, limited or no voting powers and with such special rights,
qualifications, limitations and restrictions as may be adopted by the Board of
Directors.

     In September 1996, the Company's Board of Directors approved a Shareholder
Rights Plan ("Rights Plan"). Under the Rights Plan, the Company declared a
dividend of one preferred stock purchase right on each outstanding share of
common stock. Under certain conditions, each right may be exercised to purchase
one one-hundredth share of Series A Preferred Stock at an exercise price of
$110. Of the 5,000,000 preferred shares the Company is authorized to issue,
200,000 shares have been designated Series A Preferred. The Series A Preferred
has certain dividend, voting and liquidation preferences. No preferred shares
have been issued as of June 30, 2001. The rights may only be exercised beginning
ten business days following a public announcement that a person or group
acquires 15% or more of the Company's common stock (subject to certain
exceptions) or beginning ten business days (or under certain circumstances at a
later date) following the commencement or announcement of a tender or exchange
offer which would cause that result. In addition, under certain circumstances,
the rights will entitle shareholders (other than the acquirer) to purchase the
Company's common stock, or stock of the acquirer, at a discount to market
prices. The rights, which do not have voting rights, expire on September 30,
2006.


5.   STOCK OPTIONS

     The Company has four stock option plans: The 1988 Stock Option Plan (the
"1988 Plan"), the 1994 Directors Stock Option Plan (the "Directors Plan"), the
1997 Global Employee Stock Option Plan (the "1997 Plan") and the 1998 Global
Employee Stock Option Plan (the "1998 Plan").

1988 STOCK OPTION PLAN

     The 1988 Plan, which expired on June 26, 1998, provided for the grant of
both incentive stock options and non-qualified options to officers and key
employees. Options under the 1988 Plan were granted at 100% of market price on
the date of grant, are exercisable at the rate of 25% per year after one year
from the date of grant and have a term of five years.

     At June 30, 2001, the Company has reserved 384,500 shares of common stock
for the exercise of employee stock options under the 1988 Stock Option Plan. The
number of options outstanding and exercisable under the 1988 Plan was 306,252
and 241,379 at June 30, 2001 and 2000, respectively, and no further grants can
be made under the 1988 Plan.

1994 DIRECTORS STOCK OPTION PLAN

     The Directors Plan provides for the grant of options to purchase up to
200,000 shares of the Company's common stock to non-employee directors of the
Company. Options under the Directors Plan are granted at 100% of the market
price on the date of grant, are exercisable at a rate of 25% per year after one
year from the date of grant and have a term of five years.

     At June 30, 2001 the Company has reserved 196,250 shares of common stock
for the exercise of directors' stock options. The number of options outstanding
and exercisable under the Directors Plan was 28,625 and 22,500 at June 30, 2001
and 2000, respectively.

1997 GLOBAL EMPLOYEE STOCK OPTION PLAN

     The 1997 Plan provides for the issuance of options to purchase 500,000
shares of the Company's common stock to non-officer employees of the Company.
Options under the 1997 Plan were granted at 100% of the market price on the date
of grant, exercisable at a rate of 25% per year after one year from the date of
grant and have a term of



                                       34
<PAGE>   35
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

five years. With the adoption of the 1998 Global Employee Stock Option Plan by
shareholders on November 23, 1998, no future grants under the 1997 Plan are
permitted.

     At June 30, 2001, the Company has reserved 144,476 shares of common stock
for the exercise of employee stock options under the 1997 Plan. The number of
options outstanding and exercisable under the 1997 Global Employee Stock Option
Plan was 88,944 and 61,580 at June 30, 2001 and 2000, respectively.

1998 GLOBAL EMPLOYEE STOCK OPTION PLAN

     The 1998 Plan provides for the issuance of options to purchase 1,400,000
shares of the Company's common stock to all employees including officers, key
employees and non-officer employees of the Company. Options under the 1998 Plan
are granted at 100% of the market price on the date of grant and are exercisable
at a rate of 25% per year after one year from the date of grant and have a term
of 5 or 10 years.

     At June 30, 2001, the Company has reserved 1,390,100 shares of common stock
for the exercise of employee stock options under the 1998 Plan. The number of
options outstanding and exercisable under the 1998 Plan was 291,269 and 154,233,
at June 30, 2001 and 2000, respectively.

SUMMARY OF ACTIVITY

Stock option activity under all plans is summarized below:

<TABLE>
<CAPTION>
                                                        2001                      2000                     1999
                                               ------------------------  ------------------------  -----------------------
                                                             Weighted                  Weighted                 Weighted
                                                              Average                   Average                  Average
                                                             Exercise                  Exercise                 Exercise
                                                 Shares        Price       Shares        Price       Shares       Price
                                               ------------  ----------  ------------  ----------  ------------ ----------
<S>                                            <C>           <C>         <C>           <C>         <C>          <C>
Outstanding at beginning of year                 1,456,476    $   5.85     1,496,847    $   6.20       976,234   $  10.51
Granted                                            256,900        3.69       212,900        4.18       858,200       3.48
Exercised                                           (9,150)       3.32          (975)          -             -          -
Cancelled                                         (217,225)       7.57      (252,296)       6.53      (337,587)     11.86
                                               ------------              ------------              ------------
Outstanding at end of year                       1,487,001    $   5.24     1,456,476    $   5.85     1,496,847   $   6.20
                                               ============              ============              ============

Options exercisable at end of year                 715,090                   479,692                   241,027
Weighted average fair value of
   options granted during the year              $     2.12                $     2.48                $     2.04
</TABLE>












                                       35
<PAGE>   36
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


A summary of outstanding and exercisable stock options as of June 30, 2001 is as
follows:

<TABLE>
<CAPTION>
                                                    OPTIONS OUTSTANDING                               OPTIONS EXERCISABLE
                                     -----------------------------------------------------     ---------------------------------

                                                          WEIGHTED
                                                           AVERAGE            WEIGHTED                              WEIGHTED
                                                          REMAINING           AVERAGE                                AVERAGE
             RANGE OF                    NUMBER          CONTRACTUAL          EXERCISE            NUMBER            EXERCISE
         EXERCISE PRICES              OUTSTANDING           LIFE               PRICE            EXERCISABLE           PRICE
 ------------------------------      --------------     --------------     ---------------     --------------     --------------
<S>                 <C>             <C>                 <C>                <C>                 <C>                <C>
  $     2.75  to     $     3.06            138,475               6.06       $        2.97             18,812       $       3.06
        3.09  to           3.09            363,000               7.98                3.09            183,976               3.09
        3.13  to           4.44            349,550               6.03                3.83             82,105               3.60
        4.63  to           7.75            438,376               2.27                6.48            264,494               6.83
        8.00  to          27.25            197,600               1.03               10.52            165,703              10.95
-------------       ------------     --------------     --------------     ---------------     --------------     --------------
 $      2.75  to     $    27.25          1,487,001               4.74       $        5.24            715,090       $       6.36
                                     ==============     ==============     ===============     ==============     ==============
</TABLE>


PRO FORMA DISCLOSURE UNDER SFAS 123, "ACCOUNTING FOR STOCK-BASED COMPENSATION"

     Using the intrinsic value method of accounting for the value of stock
options and shares of the Company's stock under the Employee Stock Purchase Plan
(Note 6) granted during the fiscal years ended June 30, 2001, 2000 and 1999, no
compensation cost was recorded in the accompanying Consolidated Statement of
Operations. Had compensation costs been determined based on the fair value at
the date of grant for awards in fiscal years ended June 30, 2001, 2000 and 1999
consistent with the provisions of SFAS 123, net loss and net loss per share
would have been reduced (increased) to the pro forma amounts indicated below (in
thousands, except per share amounts):

<TABLE>
<CAPTION>
                                                                            FISCAL YEARS ENDED JUNE 30,
                                                                       2001               2000             1999
                                                                  ---------------     --------------     ----------
<S>                                                               <C>                 <C>                <C>
Net income (loss) - as reported                                      $        83        $       679        $(1,136)
Net income (loss) - pro forma                                        $      (670)       $      (250)       $(1,630)

Net income (loss) per share - as reported                            $      0.01        $      0.07        $ (0.12)
Net income (loss) per share - pro forma                              $     (0.07)       $     (0.03)       $ (0.17)
</TABLE>


         The fair value of each option grant was estimated on the date of grant
using the Black-Scholes option-pricing model. Because the SFAS 123 method of
accounting has not been applied to options granted prior to July 1, 1995, the
resulting pro forma compensation cost may not be representative of that to be
expected in future years. The following weighted average assumptions were used
in valuing the option grants:








                                       36
<PAGE>   37
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


<TABLE>
<CAPTION>
                                                                                 FISCAL YEARS ENDED JUNE 30,
                                                                           2001                2000             1999
                                                                        ------------        -----------       ---------
<S>                                                                     <C>                 <C>               <C>
STOCK OPTION PLANS:

Expected life (years)                                                          4.82               4.82            4.84
Risk free interest rate                                                        4.95  %            6.25 %          5.42 %
Expected stock price volatility                                                0.83               0.85            0.85
Expected dividend yield                                                        0.00  %            0.00 %          0.00 %

EMPLOYEE STOCK PURCHASE PLAN:

Expected life (years)                                                          0.50               0.50            0.50
Risk free interest rate                                                        4.95  %            6.25 %          5.42 %
Expected stock price volatility                                                0.83               0.85            0.85
Expected dividend yield                                                        0.00  %            0.00 %          0.00 %
</TABLE>

6.   EMPLOYEE STOCK PURCHASE PLAN

     Under the Employee Stock Purchase Plan (the "ESPP"), 2,519 shares of the
Company's common stock have been reserved for purchase as of June 30, 2001. The
ESPP allows participating employees to purchase shares of the Company's common
stock through payroll deductions at 85% of the lower of fair market value at the
beginning or the end of the six month period beginning either July 1 or January
1. Non-employee directors have the right to purchase the Company's common stock
in lieu of cash for directors' fees at a purchase price equal to 100% of fair
market value on the date of issuance, which shall be February 15 or August 15.
Substantially all employees are eligible to participate in the ESPP. Under the
ESPP, 322,763, 233,541, and 148,716 shares were purchased and issued in fiscal
2001, 2000 and 1999, respectively.


7.   BENEFIT PLANS

     The Company has a profit sharing plan covering substantially all United
States employees. The profit sharing plan provides for Company matching of 100%
of contributions based on eligibility rules for employees making 401(k)
contributions up to 6% of their compensation. The Company also has a deferred
compensation plan for United States officers for the payment of benefits which
would not otherwise be eligible under its tax-qualified retirement plans. The
Company's contributions, other than the matching contributions to the profit
sharing plan, are discretionary and are determined by the Board of Directors.
The total contributions for both plans were $617,000, $733,000 and $642,000 in
fiscal 2001, 2000 and 1999, respectively.

     A subsidiary in the United Kingdom maintains a defined contribution plan
for substantially all United Kingdom employees. The plan provides a minimum
annual Company contribution of 2.5% of the employee's compensation and matching
contributions up to an additional 2.5% of compensation, based on employee
contributions.

     The United Kingdom subsidiary also has a defined benefit plan, which
covered substantially all of its employees hired prior to January 1, 1994. This
plan was frozen on April 1, 1997, with no further benefits accruing under the
plan. The components of pension expense for the fiscal years ended June 30 are
as follows (in thousands):










                                       37
<PAGE>   38
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


<TABLE>
<CAPTION>
                                                                               2001            2000
                                                                           ------------    ------------
<S>                                                                        <C>             <C>
CHANGE IN BENEFIT OBLIGATION

Benefit obligation at beginning of year                                     $   25,277      $   23,640
Interest cost                                                                    1,401           1,408
Actuarial gain/(loss)                                                           (4,476)            693
Benefits paid                                                                     (456)           (464)
                                                                           ------------    ------------
Benefit obligation at end of year                                               21,746          25,277
                                                                           ============    ============

CHANGE IN PLAN ASSETS

Fair value of plan assets at beginning of year                                  21,870          21,398
Actual return on plan assets                                                    (1,444)          1,734
Actuarial loss                                                                  (1,277)           (798)
Benefits paid                                                                     (456)           (464)
                                                                           ------------    ------------
Fair value of plan assets at end of year                                        18,693          21,870
                                                                           ============    ============

Funded status                                                                   (3,053)         (3,407)
Unrecognized actuarial loss                                                      5,381           5,685
                                                                           ------------    ------------
Net amount recognized                                                            2,328           2,278
                                                                           ============    ============

AMOUNTS RECOGNIZED IN THE ACCOMPANYING
   CONSOLIDATED FINANCIAL STATEMENTS:

     Prepaid benefit cost                                                        2,328           2,278
     Accrued benefit liability                                                  (5,381)         (5,685)
     Accumulated other comprehensive income                                      5,381           5,685
                                                                           ------------    ------------
Net amount recognized                                                       $    2,328      $    2,278
                                                                           ============    ============

<CAPTION>
WEIGHTED -AVERAGE ASSUMPTIONS AS OF JUNE 30:                                   2001            2000           1999
                                                                           ------------    ------------   ------------
<S>                                                                        <C>             <C>            <C>
Discount rate                                                                     6.50  %         6.00 %         6.25 %
Expected return on plan assets                                                    7.50  %         7.50 %         7.50 %

COMPONENTS OF NET PERIODIC BENEFIT COST:

Interest cost                                                               $    1,401      $    1,408     $    1,357
Expected return on plan assets                                                  (1,520)         (1,528)        (1,491)
Recognized actuarial loss                                                          109              76              5
                                                                           ------------    ------------   ------------
Net periodic benefit cost                                                   $      (10)     $      (44)    $     (129)
                                                                           ============    ============   ============
</TABLE>






                                       38
<PAGE>   39
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


8.   INCOME TAXES

     A summary of income (loss) before provision (benefit) for income taxes and
components of the provision (benefit) for income taxes for the fiscal years
ended June 30 is as follows (in thousands):

<TABLE>
<CAPTION>
                                                                  2001           2000          1999
                                                               -----------    -----------    ----------
<S>                                                            <C>            <C>            <C>
Income (loss) before provision (benefit) for income taxes:
     Domestic                                                   $  (6,194)     $ (4,156)      $ (5,558)
     Foreign                                                        6,322          5,201         3,388
                                                               -----------    -----------    ----------
                                                                $     128      $   1,045      $ (2,170)
                                                               ===========    ===========    ==========
Domestic benefit for income taxes:
     Current                                                    $    (976)     $    (600)     $ (2,888)
     Deferred                                                      (1,159)          (764)       (1,176)

Foreign provision (benefit) for income taxes:
     Current                                                        2,539            821           713
     Deferred                                                        (359)           909         2,317
                                                               -----------    -----------    ----------

Provision (benefit) for income taxes                            $      45      $     366      $ (1,034)
                                                               ===========    ===========    ==========
</TABLE>

          The differences between the United States Federal statutory income tax
provision (benefit) and the consolidated income tax provision (benefit) for the
fiscal years ended June 30 are summarized as follows (in thousands):

<TABLE>
<S>                                                           <C>             <C>            <C>
Federal statutory provision (benefit)                           $      45      $     366      $   (760)
Non-deductible meals and entertainment                                 59             91           121
Change in valuation reserve                                          (315)          (335)       (2,112)
Tax rate difference                                                  (276)           268          (135)
Effect of sale of foreign subsidiaries                                  -              -         1,813
Unutilized Foreign tax credits                                        224              -             -
Settlement of prior year taxes                                        310              -             -
Other, net                                                             (2)           (24)           39
                                                               -----------    -----------    ----------
Actual income tax provision (benefit)                           $      45      $     366      $ (1,034)
                                                               ===========    ===========    ==========
</TABLE>


         Deferred income taxes represent temporary differences in the
recognition of certain items for income tax and financial reporting purposes.
The components of the net deferred income tax asset as of June 30 are summarized
as follows (in thousands):








                                       39
<PAGE>   40





COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

<TABLE>
<CAPTION>

                                                                                      2001            2000
                                                                                  -------------    ------------
<S>                                                                              <C>              <C>
Deferred income tax assets:
     Research and development                                                          $ 3,423         $ 1,650
     Tax credits                                                                            85           1,773
     Depreciation and amortization                                                         165             253
     Net operating loss                                                                  7,196           5,345
     Employee benefits                                                                     480             549
     Accrued liabilities                                                                   472             547
     Capitalized software                                                                1,754           2,155
     Other                                                                               3,473           3,608
                                                                                  -------------    ------------
                                                                                       $17,048         $15,880
Valuation allowance                                                                     (7,915)         (8,231)
                                                                                  -------------    ------------
                                                                                       $ 9,133         $ 7,649
Deferred income tax liabilities:
     Employee benefits                                                                    (686)           (730)
     Other                                                                                (325)           (315)
                                                                                  -------------    ------------
                                                                                        (1,011)         (1,045)
                                                                                  -------------    ------------
Net deferred income tax asset                                                          $ 8,122         $ 6,604
                                                                                  =============    ============
</TABLE>



     Realization of deferred tax assets associated with the Company's future
deductible temporary differences, net operating loss carryforwards and tax
credit carryforwards is dependent upon generating sufficient taxable income
prior to their expiration. Although realization of the deferred tax assets is
not assured, management believes it is more likely than not that the deferred
tax assets will be realized through future taxable income or by using a tax
strategy currently available to the Company. On a quarterly basis, management
will assess whether it remains more likely than not that the deferred tax assets
will be realized. This assessment could be impacted by a determination that the
tax strategy is no longer sufficient to realize some or all of the deferred tax
assets.

     At June 30, 2001, for income tax purposes, the Company had available net
operating loss carryforwards of approximately $7.2 million, which do not expire.
In addition, the Company has general business credits, which will expire between
2010 and 2019.


9.   LEASES

     The Company leases office space, transportation and computer equipment
under non-cancelable operating leases. Initial lease terms vary in length and
several of the leases contain renewal options. Future minimum lease payments
under all non-cancelable operating leases are as follows (in thousands):







                                       40

<PAGE>   41
COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


<TABLE>
<CAPTION>

                  FISCAL YEARS ENDING JUNE 30,
-------------------------------------------------------------------
<S>                                                   <C>
2002                                                        $ 4,792
2003                                                          3,981
2004                                                          3,451
2005                                                          2,584
2006                                                          1,161
Thereafter                                                    1,548
                                                       -------------
Total minimum payments                                     $ 17,517
                                                       =============
</TABLE>



         Minimum payments under non-cancelable operating leases have not been
reduced by minimum sublease rentals of $5.8 million due in the future under
non-cancelable subleases.

     Total rental expense was $4.2 million, $5.2 million and $6.1 million for
the fiscal years ended June 30, 2001, 2000, and 1999, respectively.


10.  SEGMENT REPORTING

     The Company has only one reportable segment - the development, marketing
and support of management planning and control applications software. Revenue is
derived from the licensing of software, software maintenance, and the provision
of product implementation and support services.

     No single customer accounted for more than 10% of the Company's total
revenue in the fiscal years ended June 30, 2001, 2000 and 1999. In addition, the
Company is not dependent on any single customer or group of customers.

     The accounting policies for the geographic information are the same as
those described in Note 1 of the Notes to Consolidated Financial Statements.
Segment information for revenue is disclosed based on the geographic location of
the customer. Geographic segment information is as follows:






                                       41


<PAGE>   42


COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

<TABLE>
<CAPTION>
                                                                             FISCAL YEARS ENDED JUNE 30,
                                                                   ----------------------------------------------

                                                                      2001             2000             1999
                                                                   ------------     ------------     ------------

<S>                                                                <C>              <C>              <C>
Revenue from external customers:
     United States                                                    $ 35,927         $ 31,928         $ 31,744
     United Kingdom                                                     12,112           13,418           12,492
     Other countries                                                    14,802           15,977           19,736
                                                                   ------------     ------------     ------------
          TOTAL REVENUE                                               $ 62,841         $ 61,323         $ 63,972
                                                                   ============     ============     ============

Operating income (loss):
     United States                                                    $ (3,345)        $    333         $ (1,590)
     United Kingdom                                                      4,123            1,200              420
     Other countries                                                     9,644           10,197           10,023
                                                                   ------------     ------------     ------------
          Total operating income                                        10,422           11,730            8,853

Unallocated expenses                                                   (10,294)         (10,685)         (11,023)
                                                                   ------------     ------------     ------------
INCOME (LOSS) BEFORE TAXES                                            $    128         $  1,045         $ (2,170)
                                                                   ============     ============     ============

Identifiable assets:
     United States                                                    $ 50,511         $ 50,515         $ 59,242
     United Kingdom and other countries                                  8,766           11,909           29,450
                                                                   ------------     ------------     ------------
          TOTAL IDENTIFIABLE ASSETS                                   $ 59,277         $ 62,424         $ 88,692
                                                                   ============     ============     ============

</TABLE>




     Unallocated expenses consist of general corporate expenses, internal
research and product development expenses, interest expense and interest income.
Unallocated amounts in the fiscal year ended June 30, 2001 include approximately
$0.9 million of restructuring and unusual related expenses. Unallocated amounts
in the fiscal year ended June 30, 1999 include approximately $1.0 million of
restructuring and unusual related expenses.


















                                       42


<PAGE>   43


COMSHARE, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

11.  QUARTERLY FINANCIAL DATA

     Summarized quarterly financial data is as follows (unaudited and in
thousands except per share data):

<TABLE>
<CAPTION>


                                                                     Income                              Net
                                                                     (Loss)             Net            Income
                                                                      From             Income          (Loss)
                                                   Revenue         Operations          (Loss)         Per Share
                                                  -----------     --------------     -----------     ------------
<S>                                              <C>             <C>                <C>              <C>
2001
First Quarter                                       $ 15,443           $   (287)       $     78          $  0.01
Second Quarter                                        14,825               (304)              5                -
Third Quarter                                         15,877               (868)           (517)           (0.05)
Fourth Quarter                                        16,696                343             517             0.05
                                                  -----------     --------------     -----------     ------------
Year Ended June 30                                  $ 62,841           $ (1,116)       $     83          $  0.01
                                                  ===========     ==============     ===========     ============

2000
First Quarter                                       $ 14,506           $   (178)       $     52          $  0.01
Second Quarter                                        15,023               (250)             59             0.01
Third Quarter                                         15,028               (170)            161             0.02
Fourth Quarter                                        16,766                235             407             0.04
                                                  -----------     --------------     -----------     ------------
Year Ended June 30                                  $ 61,323           $   (363)       $    679          $  0.07
                                                  ===========     ==============     ===========     ============

1999
First Quarter                                       $ 17,159           $   (409)       $     52          $  0.01
Second Quarter                                        16,925               (379)             80             0.01
Third Quarter                                         14,798             (1,782)         (1,422)           (0.15)
Fourth Quarter                                        15,090             (1,382)            154             0.02
                                                  -----------     --------------     -----------     ------------
Year Ended June 30                                  $ 63,972           $ (3,952)       $ (1,136)         $ (0.12)
                                                  ===========     ==============     ===========     ============

</TABLE>


         The Company recorded a $0.9 million restructuring charge in the third
quarter ending March 31, 2001. This charge reflected certain cost reduction
actions by the Company, taken to reduce personnel costs and other expenses.

     During the quarter ended June 30, 1999, the Company recorded approximately
$1.0 million of restructuring charges related to staff reductions due to the
consolidation of the Company's financial and marketing activities and the
consolidation of certain facilities.


12.  LITIGATION

     The Company is a party to various disputes and litigation in the normal
course of business. Management does not anticipate that the outcome of any such
disputes or litigation will have a materially adverse effect on the financial
position of the Company.












                                       43



<PAGE>   44



                             COMSHARE, INCORPORATED

                                   SCHEDULE II
                              CONSOLIDATED SCHEDULE
                       OF VALUATION & QUALIFYING ACCOUNTS

<TABLE>
<CAPTION>

                                                                          Additions
                                         Balance       Charged to        (Deductions)                                    Balance
           Description                  Beginning       Costs and            from         Translation       Other         End of
                                        of Period       Expenses           Reserve        Adjustments      Related        Period
                                       ------------    ------------     ------------    --------------    ---------     ----------
<S>                                   <C>             <C>              <C>              <C>               <C>          <C>
Allowance for doubtful accounts
 for the years ended June 30:

               2001                        $ 1,230           $   -           $   36              $  3          $ -        $ 1,269
                                       ============    ============     ============    ==============    =========     ==========

               2000                        $ 1,327           $   -           $  (96)             $ (1)         $ -        $ 1,230
                                       ============    ============     ============    ==============    =========     ==========

               1999                        $ 1,830           $ 302           $ (816)             $ 11          $ -        $ 1,327
                                       ============    ============     ============    ==============    =========     ==========







<CAPTION>


                                                                          Additions
                                         Balance       Charged to        (Deductions)                                    Balance
           Description                  Beginning       Costs and            from        Translation       Other         End of
                                        of Period       Expenses           Reserve       Adjustments      Related        Period
                                       ------------    ------------     ------------    --------------    ---------     ----------
<S>                                   <C>              <C>              <C>             <C>               <C>           <C>
      Restructuring Reserves
   for the years ended June 30:

               2001                        $ 1,730           $ 892         $ (1,210)              $ -          $ -        $ 1,412
                                       ============    ============     ============    ==============    =========     ==========

               2000                        $ 4,288           $   -         $ (2,558)              $ -          $ -        $ 1,730
                                       ============    ============     ============    ==============    =========     ==========

               1999                        $ 7,074           $ 967         $ (3,753)              $ -          $ -        $ 4,288
                                       ============    ============     ============    ==============    =========     ==========

</TABLE>



















                                       44


<PAGE>   45

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                            Comshare, Incorporated
DATE:  SEPTEMBER 28, 2001                   By: /s/ Brian J. Jarzynski
                                                ----------------------
                                                Brian J. Jarzynski
                                                Vice President,
                                                Chief Financial Officer and
                                                Treasurer

     Pursuant to the requirement of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on behalf of
the Company in the capacities and on the dates indicated.

<TABLE>
<CAPTION>



             SIGNATURE                                    TITLE                              DATE
-------------------------------------       ----------------------------------       ----------------------

<S>                                         <C>                                     <C>
 /s/ Dennis G. Ganster                      Chairman of the Board, President,           September 28, 2001
----------------------                      Chief Executive Officer and               ----------------------
Dennis G. Ganster                           a Director
                                            (Principal Executive Officer)


 /s/ Brian J. Jarzynski                     Vice President,                             September 28, 2001
-----------------------                     Chief Financial Officer and               ----------------------
Brian J. Jarzynski                          Treasurer
                                            (Principal Financial Officer)


 /s/ Kristin L.G. Marsh                     Corporate Controller and                    September 28, 2001
-----------------------                     Chief Accounting Officer                  ---------------------
Kristin L.G. Marsh                          (Principal Accounting Officer)


 /s/ Daniel T. Carroll                      Director                                    September 28, 2001
----------------------                                                                ----------------------
Daniel T. Carroll


 /s/ Geoffrey B. Bloom                      Director                                    September 28, 2001
----------------------                                                                ----------------------
Geoffrey B. Bloom


 /s/ Richard L. Crandall                    Director                                    September 28, 2001
------------------------                                                              ----------------------
Richard L. Crandall


 /s/ Alan G. Merten                         Director                                    September 28, 2001
-------------------                                                                   ----------------------
Alan G. Merten


 /s/ John F. Rockart                        Director                                    September 28, 2001
--------------------                                                                  ----------------------
John F. Rockart



 /s/ Kathryn A. Jehle                       Director                                    September 28, 2001
---------------------                                                                 ----------------------
Kathryn A. Jehle

</TABLE>







                                       45



<PAGE>   46



                                INDEX TO EXHIBITS

EXHIBIT NO.                       DESCRIPTION

3.01     Restated Articles of Incorporation of the Registrant, as amended -
         incorporated by reference to Exhibit 3.01 to the Registrant's Form 10-K
         Report for the fiscal year ended June 30, 1998.

3.02     Restated Bylaws of the Registrant - incorporated by reference to
         Exhibit 3.02 to the Registrant's Form 8-K Report filed March 9, 2001.

4.01     Specimen form of Common Stock Certificate - incorporated by reference
         to Exhibit 4(c) to the Registrant's Form S-1 Registration Statement No.
         2-29663.

4.02     Credit agreement dated September 23, 1997, among Comshare,
         Incorporated, its Borrowing Subsidiary (as defined therein) and Harris
         Trust and Savings Bank - incorporated by reference to Exhibit 4.02 to
         the Registrant's Form 10-K Report for the fiscal year ended June 30,
         1997.

4.03     First Amendment to Credit Agreement, dated September 23, 1998, between
         the Registrant, Comshare, Limited and Harris Trust and Savings Bank -
         incorporated by reference to Exhibit 4.01 to the Registrant's Form 10-Q
         Report for the quarter ended September 30, 1998.

4.04     Second Amendment and Waiver to Credit Agreement, dated October 10,
         1999, between the Registrant, Comshare Limited and Harris Trust and
         Savings Bank - incorporated by reference to Exhibit 4.01 to the
         Registrant's Form 10-Q Report for the quarter ended September 30, 1999.

4.05     Third Amendment and Waiver to Credit Agreement, dated June 29, 2000,
         between the Registrant, Comshare Limited and Harris Trust and Savings
         Bank - incorporated by reference to Exhibit 4.01 to the Registrant's
         Form 10-Q Report for the quarter ended September 30, 2000.

4.06     Fourth Amendment and Waiver to Credit Agreement, dated October 31,
         2000, between the Registrant, Comshare Limited and Harris Trust and
         Savings Bank - incorporated by reference to Exhibit 4.02 to the
         Registrant's Form 10-Q Report for the quarter ended September 30, 2000.

4.07     Fifth Amendment to Credit Agreement, dated May 15, 2001, between the
         Registrant, Comshare Limited and Harris Trust and Savings Bank.

4.08     Sixth Amendment to Credit Agreement, dated September 17, 2001, between
         the Registrant, Comshare Limited and Harris Trust and Savings Bank.

4.09     Rights Agreement, dated as of September 16, 1996, between Comshare,
         Incorporated and Key Bank National Association, as Rights Agent -
         incorporated by reference to Exhibit 2 to the Registrant's Registration
         Statement on Form 8-A, filed on September 17, 1996.

4.10     Form of certificate representing Rights (included as Exhibit B to the
         form of Rights Agreement filed as Exhibit 4.04). Pursuant to the Rights
         Agreement, Rights Certificates will not be mailed until after the
         earlier of (i) the tenth business day (or such later date as may be
         determined by the Board of Directors, with the concurrence of a
         majority of the Continuing Directors, prior to such time as any person
         becomes an Acquiring Person) after the date of the commencement of, or
         first public announcement of the intent to commence, a tender or
         exchange offer by any person or group of affiliated or associated
         persons (other than the Company or certain entities affiliated with or
         associated with the Company), if, upon consummation thereof, such
         person or group of affiliated or associated persons would be the
         beneficial owner of 15% or more of such outstanding shares of common
         stock - incorporated by reference to Exhibit 1 to the Registrant's
         Registration Statement on Form 8-A, filed on September 17, 1996.

4.11     Agreement among Computershare Investor Services, Inc., Harris Trust and
         Savings Bank and the Registrant.

10.01    Benefit Adjustment Plan of Comshare, Incorporated, effective
         June 1, 1986, as amended and restated on November 6, 1997 -
         incorporated by reference to Exhibit 10.01 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1999.







                                       46

<PAGE>   47



10.02    First Amendment to the Benefit Adjustment Plan of Comshare,
         Incorporated - incorporated by reference to Exhibit 10.01 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 1999.

10.03    Second Amendment to the Benefit Adjustment Plan of Comshare,
         Incorporated - incorporated by reference to Exhibit 10.05 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.04    Comshare, Incorporated 1988 Stock Option Plan, as amended -
         incorporated by reference to Exhibit 10.21 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1990 and Exhibit 10.22
         to the Registrant's Form 10-Q Report for the quarter ended September
         30, 1994.

10.05    Third Amendment to the Comshare, Incorporated 1988 Stock Option Plan,
         as amended - incorporated by reference to Exhibit 10.06 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.06    Stock Option Agreement, effective as of March 10, 1997, between
         Comshare, Incorporated and Daniel T. Carroll - incorporated by
         reference to Exhibit 10.22 to the Registrant's Form 10-Q Report for the
         quarter ended March 31, 1997.

10.07    Trust Agreement under the Benefit Adjustment Plan of Comshare,
         Incorporated, effective April 25, 1988, as amended - incorporated by
         reference to Exhibit 10.31 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 1993.

10.08    1994 Executive Stock Purchase Program of Comshare, Incorporated -
         incorporated by reference to Exhibit 10.19 to the Registrant's Form
         10-Q Report for the quarter ended September 30, 1994.

10.09    Employee Stock Purchase Plan of Comshare, Incorporated - incorporated
         by reference to Exhibit 10.20 to the Registrant's Form 10-Q Report for
         the quarter ended September 30, 1994.

10.10    First Amendment to Employee Stock Purchase Plan - incorporated by
         reference to Exhibit 10.01 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999.

10.11    Second Amendment to Employee Stock Purchase Plan - incorporated by
         reference to Exhibit 10.02 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999

10.12    Third Amendment to Employee Stock Purchase Plan - incorporated by
         reference to Exhibit 10.03 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999.

10.13    1994 Directors Stock Option Plan of Comshare, Incorporated -
         incorporated by reference to Exhibit 10.21 to the Registrant's Form
         10-Q Report for the quarter ended September 30, 1994.

10.14    First Amendment to Directors Stock Option Plan - incorporated by
         reference to Exhibit 10.05 to Registrant's Form 10-Q for the quarter
         ended September 30, 1999.

10.15    Second Amendment to Directors Stock Option Plan - incorporated by
         reference to Exhibit 10.07 to the Registrant's Form 10-Q for the
         quarter ended March 31, 2001.

10.16    Comshare, Incorporated Change in Control Severance Agreement dated as
         of June 1, 1998, between Comshare, Incorporated and Dennis G. Ganster -
         incorporated by reference to Exhibit 10.19 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.

10.17    First Amendment to Comshare, Incorporated Change in Control Severance
         Agreement dated as of November 30, 1999, between Comshare, Incorporated
         and Dennis G. Ganster - incorporated by reference to Exhibit 10.03 to
         the Registrant's Form 10-Q Report for the quarter ended December 31,
         1999.

10.18    Comshare, Incorporated Change in Control Severance Agreement dated as
         of June 1, 1998, between Comshare, Incorporated and David King -
         incorporated by reference to Exhibit 10.21 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.










                                       47

<PAGE>   48

10.19    First Amendment to Comshare, Incorporated Change in Control Severance
         Agreement dated as of November 30, 1999, between Comshare, Incorporated
         and David King - incorporated by reference to Exhibit 10.02 to the
         Registrant's Form 10-Q Report for the quarter ended December 31, 1999.

10.20    Comshare, Incorporated Change in Control Severance Agreement dated as
         of June 1, 1998, between Comshare, Incorporated and Stanley Starkey -
         incorporated by reference to Exhibit 10.22 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.

10.21    First Amendment to Comshare, Incorporated Change in Control Severance
         Agreement dated as of November 30, 1999, between Comshare, Incorporated
         and Stanley R. Starkey - incorporated by reference to Exhibit 10.02 to
         the Registrant's Form 10-Q Report for the quarter ended December 31,
         1999.

10.22    Comshare, Incorporated Change in Control Severance Agreement dated as
         of February 9, 2001, between Comshare, Incorporated and Brian Hartlen -
         incorporated by reference to Exhibit 10.01 to the Registrant's Form
         10-Q Report for the quarter ended March 31, 2001.

10.23    Comshare, Incorporated Change in Control Severance Agreement dated as
         of February 16, 2001, between Comshare, Incorporated and Brian
         Jarzynski - incorporated by reference to Exhibit 10.02 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.24    Comshare, Incorporated 1998 Global Employee Stock Option Plan -
         incorporated by reference to Exhibit 10.25 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1998.

10.25    First Amendment to 1998 Global Employee Stock Option Plan -
         incorporated by reference to Exhibit 10.04 to the Registrant's Form
         10-Q Report for the quarter ended September 30, 1999.

10.26    Second Amendment to 1998 Global Employee Stock Option Plan -
         incorporated by reference to Exhibit 10.08 to the Registrant's Form
         10-Q Report for the quarter ended March 31, 2001.

10.27    Letter of Understanding, dated February 8, 2001, between Comshare,
         Incorporated and Norman Neuman, Jr., and Norman Neuman, Jr. Notices of
         Grant of Stock Options and Option Agreements - incorporated by
         reference to Exhibit 10.03 to the Registrant's Form 10-Q Report for the
         quarter ended March 31, 2001.

10.28    Kathryn A. Jehle Notices of Grant of Stock Options and Option
         Agreements - incorporated by reference to Exhibit 10.04 to the
         Registrant's Form 10-Q Report for the quarter ended March 31, 2001.

10.29    Summary of 1999 Senior Executive Incentive Plan - incorporated by
         reference to Exhibit 10.27 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 1998.

10.30    Summary of 2000 Senior Executive Incentive Plan - incorporated by
         reference to Exhibit 10.32 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 2000.

10.31    Summary of 2001 Senior Executive Incentive Plan - incorporated by
         reference to Exhibit 10.33 to the Registrant's Form 10-K Report for the
         fiscal year ended June 30, 2000.

10.32    Lease dated September, 1994, between Comshare, Incorporated, Tenant and
         MGI Holding, Inc., Landlord for office space located at 555 Briarwood
         Circle, Ann Arbor, Michigan 48108 - incorporated by reference to
         Exhibit 10.18 to the Registrant's Form 10-Q Report for the quarter
         ended September 30, 1994

10.33    Agreement between Taurusbuild Limited, Comshare and Svenska
         Handelsbanken related to the lease of office space for the Company's
         London office facility - incorporated by reference to Exhibit 10.17 of
         the Registrant's Form 10-K Report for the fiscal year ended June 30,
         1994.

10.34    Software License Agreement by and between Arbor Software Corporation
         and Comshare, Incorporated dated December 23, 1993 - incorporated by
         reference to Exhibit 10.20 to Amendment Number 3 to the Registrant's
         Form 10-K Report, filed November 8, 1995, for the fiscal year ended
         June 30, 1995. (Portions




                                       48




<PAGE>   49




         of this exhibit have been omitted and filed separately with the
         Securities and Exchange Commission pursuant to a request for
         confidential treatment pursuant to Rule 24b-2.)

10.35    First Amendment to License Agreement by and between Arbor Software
         Corporation and Comshare, Incorporated dated March 1, 1994 -
         incorporated by reference to Exhibit 10.20 to the Registrant's Form
         10-K Report for the fiscal year ended June 30, 1995. (Portions of this
         exhibit have been omitted and filed separately with the Securities and
         Exchange Commission pursuant to a request for confidential treatment
         pursuant to Rule 24b-2.)

10.36    Second Amendment to License Agreement by and between Arbor Software
         Corporation and Comshare, Incorporated - incorporated by reference to
         Exhibit 10 of the Registrant's Form 8-K Report filed on December 24,
         1997. (Portions of this exhibit have been omitted and filed separately
         with the Securities and Exchange Commission pursuant to a request for
         confidential treatment pursuant to Rule 24b-02.)

10.37    Third Amendment to License Agreement by and between Hyperion and
         Comshare, Incorporated- incorporated by reference to Exhibit 10.33 to
         the Registrants Form 10-K Report for the fiscal year ended June 30,
         1998. (Portions of this exhibit have been omitted and filed separately
         with the Securities and Exchange Commission pursuant to a request for
         confidential treatment pursuant to Rule 24b-02.)

21.01    Subsidiaries of the Registrant.

23.01    Consent of Independent Public Accountants.

99.00    Amended and Restated Profit Sharing Plan of Comshare, Incorporated,
         Form 11-K Annual Report - filed pursuant to Section 15(d) of the
         Securities Exchange Act of 1934, as amended, for the fiscal year ended
         June 30, 2001.















                                       49