SumTotal Selected to Support Training and Global Learning Under the U.S. Coast Guard's Integrated Deepwater System

SumTotal tapped to provide critical training support within largest modernization effort in the U.S. Coast Guard’s history

MOUNTAIN VIEW, CA (August 2, 2004) – SumTotal Systems (NASDAQ: SUMT), the industry’s largest provider of learning and business performance technologies, processes and services, today announced that Integrated Coast Guard Systems (ICGS) has selected the company’s platform to deliver critical training and drive readiness within the U. S. Coast Guard’s Integrated Deepwater System (IDS) program.

The IDS is a multi-year, multi-million dollar effort to modernize and replace the U.S. Coast Guard’s fleet of ships and aircraft, and to improve command and control and logistics systems in maritime regions. It is the largest recapitalization effort in the Coast Guard’s 213-year history.

SumTotal was selected by ICGS, a joint venture of Lockheed Martin and Northrop Grumman Ship Systems. ICGS was awarded the IDS contract in June 2002. SumTotal is a subcontractor to Lockheed Martin Maritime Systems & Sensors business, a partner in ICGS, and the domain lead for logistics systems development under the IDS program.

To ensure the success of the historic project, ICGS is implementing only best-of-breed technologies, including the SumTotal Enterprise Suite. ICGS evaluated more than 50 learning and performance management solutions and SumTotal was chosen for its flexible, robust and highly secure solution to create, deliver and track personalized training requirements, qualifications and certifications for 15,000 active duty, on-ship, in-air and support personnel.

“Integrated Coast Guard Systems is committed to modernizing the U.S. Coast Guard’s Deepwater program through a combination of innovative technologies and platforms, enhanced systems and innovative logistics support,” said Alex Rodriguez, ICGS System Training Lead. “It was imperative that we find a long-term provider with a strong financial position and the most compelling and innovative business solutions. SumTotal offers a superior combination of content management and analytical capabilities that will drive maximum operational effectiveness and minimize total ownership cost, our two critical business drivers.”

The central goal of the U.S. Coast Guard is optimal manning, or having ships and aircraft 100 percent manned and 100 percent trained, 100 percent of the time. SumTotal will provide a centralized, Web-based environment for administering learning prerequisites, managing registration and tracking completion of online, classroom and simulator courses ranging from fire safety to radar and weapon systems training. SumTotal’s robust set of capabilities helps manage the complexity of certifications and manning requirements, while reducing costs and cycle time in creating courses, sharing critical knowledge and readying personnel.

SumTotal also will facilitate mobile learning environments accessible to personnel on U.S. Coast Guard cutters that are docked, close to shore or even out to sea. Courses and information will be downloaded to the cutter, allowing personnel to continue learning at-sea, just as if connected to the on-shore system. Upon their return, the system will synchronize their learning results completely. SumTotal’s analysis and reporting capabilities are designed to measure and manage key performance parameters and update personnel records in real-time, including qualifications by job function and number of “schools” completed.

“The selection of SumTotal for the Integrated Deepwater System underscores our commitment to elevating the preparedness and leadership of organizations in both the public and private sectors,” said R. Andrew Eckert, CEO of SumTotal Systems. “We are honored to team with Lockheed Martin, Northrop Grumman and the U.S. Coast Guard and to contribute to the overall value, results and success of a program that directly supports ongoing Homeland Security efforts.”

About Integrated Deepwater System

IDS is a critical multi-year, multi-billion dollar program to modernize and replace the Coast Guard's aging ships and aircraft, and improve command and control and logistics systems. It is the largest recapitalization effort in the 213-year history of the Coast Guard. When complete, the interoperable IDS system will include three classes of new cutters and their associated small boats, a new fixed-wing manned aircraft fleet, a combination of new and upgraded helicopters, and both cutter-based and land-based unmanned air vehicles (UAVs). All of these highly capable assets are linked with Command, Control, Communications and Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems, and are supported by a new and far-reaching integrated logistics system.

About Integrated Coast Guard Systems

ICGS (www.teamdeepwater.com) is a joint venture of Lockheed Martin and Northrop Grumman. Headquartered in Rosslyn, VA, core leadership teams are located in Virginia, Louisiana, New Jersey, and Washington, DC.

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 Mt. View, CA, with offices throughout the US, as well as 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 System’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 SumTotal Systems’ filings with the Securities and Exchange Commission, including the joint proxy statement/prospectus on Form S-4 filed under the name Hockey Merger Corporation.