SumTotal Systems Launches to Industry Acclaim

Merger between industry pioneers Docent and Click2learn draws accolades and endorsements from leading analysts, learning practitioners, industry partners and investors

MOUNTAIN VIEW, CA (March 19, 2004) -- SumTotal Systems (NASDAQ: SUMT), the new learning and business performance technology leader formed by the merger of industry pioneers Docent and Click2learn, today announced that it has launched to the enthusiastic response and endorsement of leading analysts, learning practitioners, industry partners and investors.

The company's new tagline, "Accelerate Performance. Accelerate Profits.™" highlights its core mission: to accelerate its customers' performance and bottom-line profitability through innovative and compelling business solutions. The combined company will provide the industry with the most comprehensive technology offering available. With approximately twice the customer support and services resources, deeper R & D and broader experience across virtually every industry sector, SumTotal will expand on expertise gained from implementations at more than 600 of the world's best-known companies.

"An easy prediction to make over the last few years is that we would see consolidation in the learning technology industry," said Kevin Kruse, founder of e-LearningGuru.com. "However, I think the formation of SumTotal Systems is more than just a merger of two companies. Years from now I think we'll look back and view the birth of SumTotal as a seminal event in our industry; it signals the official end of the e-learning hype cycle, and the birth of a new era where the focus is on the use of learning technology for bottom-line results. Instead of being technology-led or even learner-focused, we should be results-driven. SumTotal now has the opportunity to lead us in this direction."

"Selecting a learning technology provider continues to be in the path of progress for most large organizations, and it continues to move from a departmental decision to an enterprise-wide initiative," said Trace Urdan, Senior Research Analyst for ThinkEquity Partners. "Separately, Click2learn and Docent are already two of the most innovative and reliable companies in the space. Combined as SumTotal, the company is now the most financially viable company focused in this sector and clearly will be a safe bet for large organizations seeking a long-term partner. In addition, investors are looking for companies that have the resources to lead the industry through product innovation, solid execution, and financial stability. SumTotal is positioned to be one of those companies."

"The footprint of the merged company is extremely compelling," said Eric Martinuzzi, Senior Research Analyst with Craig-Hallum Capital Group. "With over 600 customers, including 40 percent of the Fortune 50, we expect SumTotal Systems to be a name investors pay attention to in the learning technology sector."

"The emergence of SumTotal Systems signals a significant evolution of the learning technology field," said Elliott Masie, founder of the Masie Center, a renowned e-lab and think tank dedicated to exploring the connection between learning and technology. "Learning platforms have become 'mission critical' technology in many large organizations. The combination of Click2learn and Docent, two leaders in the field already, creates a company with a strong history of innovation and execution, and with rich backgrounds in both technology and learning methodology. Major corporations deploying learning management systems will recognize the increased brain power and resources that are combined in the new SumTotal."

"At Rockwell Collins, we have multidimensional requirements due to our diverse product families and organizational needs," said Steve Junion, Manager, Learning Technologies. "SumTotal's platform has helped us successfully tie learning, knowledge and performance to our business initiatives and corporate vision at the highest levels in the company. SumTotal's innovative product suite enables us to drive performance and show real business results, helping to make us an integral an invaluable part of the organization."

"The merger of Docent and Click2learn will bring a new leadership to the industry," Junion continued. "With the experience within their installed base, their advanced capabilities and commitment to customer success, they will bring vision and innovative ideas to those needing a comprehensive and integrated solution."

"Both Docent and Click2Learn have been highly valued, longtime partners with Thomson NETg," said Joe Dougherty, President, Thomson NETg. "That these two extraordinary companies are joining forces to become SumTotal Systems means that, together, we'll be able to work ever more closely with our shared clients moving forward to understand their most pressing business issues and to deliver solutions that help our clients achieve true and measurable success through learning."

"My career in learning has been focused on helping organizations prove the return-on-investment in their training expenditures," said Jack Phillips, Chairman of the ROI Institute and author or editor of 15 books on the subject of ROI. "I am thrilled that SumTotal Systems not only recognizes the importance of ROI, but has created a company with more proof points on how their technology has improved business performance in leading organizations than any vendor in this industry. Anyone who is serious about elevating the business impact that learning and knowledge can have in their company should be talking with SumTotal Systems."

"Companies typically invest 80% of more of their training budgets in formal learning. By 'formal,' I mean scheduled, 'authorized' events like workshops and webinars," says Internet Time Group's Jay Cross. "Workers learn 80% or more of what it takes to do their jobs informally, in their own way and on their own schedule. SumTotal is the only company in the business that acknowledges this paradox. They don't plan to continue the charade where companies put their training dollars where they'll do the least good. SumTotal's platform is a lot more than a resource-scheduler and delivery mechanism. They 'get it' and they're committed to doing even more about it."

"The new tagline 'Accelerate Performance. Accelerate Profits.' sums up the significance of what SumTotal is providing its clients," said Mike Brennan, Program Manager of Corporate Learning and Performance Research at IDC. "Many senior executives realize that individual learning is a 'lever' they can pull in their organization to improve business performance. SumTotal represents a great technology option to effectively move that lever, and impact an organization where it matters most - improving the bottom line."

"This merger is an important step in the learning technology market," said Josh Bersin, Principal of Bersin & Associates, a leading provider of corporate and vendor research in e-learning technology and implementation. "SumTotal is now the largest independent provider of learning technology platforms and has the financial viability and product strength to create market leadership. As e-learning becomes a mainstream solution for organizations around the world, buyers will look to SumTotal as a safe buy for proven solutions which drive business impact from learning."

"A learning technology platform is usually the most important choice for any e-learning initiative, and the large number of diverse systems has made it difficult for buyers in the industry," said Brandon Hall, Ph.D., of brandon-hall.com, a leading authority on selecting e-learning solutions. "I've seen too many buyers go with small vendors that don't have the customer base or the wherewithal to deliver over time. The combination of two of the long-time leaders in the space, Click2learn and Docent, to create SumTotal, is good news for the industry and for buyers."

"Click2Learn and Docent have been instrumental in providing our clients with leading learning management technologies," said Jeanne Meister, Vice President of Market Development for Accenture Learning. "The combination of these two market leaders signals the continued consolidation in the marketplace and migration to enterprise learning solutions. With the combined strength of SumTotal Systems, our clients will enjoy even greater benefits."

Conference Call & Live Webcast

To provide further information on the new company, the senior management of SumTotal Systems will host a live conference call on March 22, at 2:00 p.m. EST / 11:00 a.m. PST. The live audio of the conference call will be accessible to the public via Webcast at www.sumtotalsystems.com/company/investors.html or via phone at (877) 354-5008 (toll free USA and Canada) or (206) 315-8596 (International). The conference entry code is 44553#. A replay of the Webcast and conference call will be available for 7 days after the conference at the same URL as above, or via phone at (800) 207-7077 (toll free USA and Canada) or (913) 383-5767 (International). The conference replay code is 4059#.

About SumTotal Systems, Inc.

SumTotal Systems Inc. (NASDAQ: SUMT) is the industry's largest single provider of business performance and learning technologies, processes and services. Formed by the merger of industry pioneers Docent and Click2learn, the company is uniquely focused on helping organizations harness and manage mission-critical intellectual power to solve real-world business problems and produce significant bottom-line results. SumTotal Systems has helped accelerate performance and profit for more than 600 of the world's best-known companies, including Microsoft, Cingular Wireless, Vodafone, Lucent, Accenture, Cendant, Harley-Davidson, Wyeth, Wachovia and D & B. SumTotal Systems is headquartered in Mt. View, CA, with offices throughout the US, as well as London, Paris, Heidelberg, Sydney, Tokyo and Hyderabad, India.

Safe Harbor Statement / Forward-Looking Statements
Information in this press release contains forward-looking statements, including statements about future business operations, financial performance, customer benefits and potential synergies to be derived from the transaction and other market conditions that include risks and uncertainties. These statements are not historical facts or guarantees of future performance or events and are based on current expectations, estimates, beliefs, assumptions, goals and objectives, and neither Docent nor Click2learn assumes any obligation to update any such forward-looking statements. These statements are not guarantees of future results and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed or implied by these statements. You are cautioned not to place undue reliance on any forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (i) the challenges and costs of closing, integration and restructuring and the ability to achieve anticipated synergies associated with the announced plans to merge Docent and Click2learn; (ii) an emerging and rapidly evolving market, (iii) market uncertainty with respect to the proposed merger and acceptance of the combined company's product offerings by customers and partners; (iv) adverse changes in general economic or market conditions; (v) delays or reductions in information technology spending; (vi) the ability to attract and retain highly qualified employees; (vii) intense competition in the marketplace and (viii) other events and other important factors disclosed previously and from time to time in Docent's and Click2learn's with the Securities and Exchange Commission, including the companies' respective 10-K and 10-Q filings.