SumTotal Systems Highlights Impact of Learning on Performance and Profits for 30,000 Attendees at Tokyo's E-learning World 2004

SumTotal president Kevin Oakes to deliver keynote

MOUNTAIN VIEW, CA (July 27, 2004) – Building further momentum in the fast-growing Japanese enterprise learning market, SumTotal (NASDAQ: SUMT), the industry’s largest provider of learning and business performance technologies, services and processes, announced today that its president, Kevin Oakes, will deliver a keynote address at e-Learning World 2004. Held at the Tokyo International Exhibition Center from July 28 – 30, the show is Japan’s largest learning expo and is expected to draw more than 30,000 attendees.

In keeping with the Expo’s main theme -- " e-Learning for the Next Stage: From e-Learning Usability to Success“ -- Oakes will lead a session entitled "Accelerating Business Performance With e-Learning: Trends and Success Stories of Human Capital Development Projects in the U.S. and Elsewhere.” During the session, which is scheduled from 10:30 – 11:30 a.m. on Thursday, July 29, Oakes will cover the latest trends, best practices and future direction of the learning and performance industry in the U.S. as well as other parts of the world, especially the increasing focus on connecting learning and performance initiatives to measurable business results.

“Following a decisive focus on ‘e-Japan” by the Japanese government, Japanese companies and educational institutions have developed a strong interest in e-learning,” said Oakes. “The Japanese market for learning technology is maturing rapidly and customer reaction to SumTotal’s products has been very positive. We already have a number of large, well-known customers and prospects in Japan and we believe other companies who, up until this point, have been struggling with fragmented, disparate technologies to deliver learning to employees, are ready for SumTotal’s unified, integrated, easy-to-implement solutions.”

The SumTotal Enterprise Suite is an enterprise-wide, globally scalable learning management platform that leverages learning and knowledge management and manages learners, content and resources to enhance business performance. The SumTotal Suite provides unparalleled levels of functionality and support for any blend of delivery environment: self-paced Web, live interactive Web, instructor-led courses, on-the-job training, seminars, mentoring and written documentation. Based on an open-architecture, the SumTotal Suite integrates seamlessly with other learning systems and ERP applications across the enterprise.

SumTotal’s Japanese language capabilities convert the product’s entire interface into Japanese, allowing users to collaborate, exchange knowledge, create and deliver information and report results in their native language, making the product a natural fit for the Japanese marketplace.

About SumTotal Systems, Inc.

SumTotal Systems Inc. (NASDAQ: SUMT) is the business performance and learning technology industry’s largest single provider of 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 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 Mountain View, CA, with offices throughout the US, as well as in London, Paris, Heidelberg, Sydney, Tokyo and Hyderabad, India.

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Information in this press release contains forward-looking statements, including statements about future business operations, industry leadership, financial performance and viability, customer benefits, timing and features of our product offerings, acceptance of our solutions, expected innovation, and other potential benefits and 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 SumTotal Systems does not assume 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 integration and restructuring and the ability to achieve anticipated synergies associated with the recent merger; (ii) an emerging and rapidly evolving market, (iii) market uncertainty with respect to the merger and acceptance of SumTotal Systems’ 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 SumTotal Systems’ filings with the Securities and Exchange Commission, including its quarterly report on Form 10Q filed on May 17, 2004.