Banco Bradesco Chooses SumTotal Systems to Speed Organizational Proficiency and Performance

Brazil’s largest commercial bank and one of the world’s top 100, will use SumTotal to unify learning for 78,000 employees across the enterprise

MOUNTAIN VIEW, CA (September 1, 2004) – Continuing its momentum in the burgeoning South American learning market, SumTotal Systems (NASDAQ: SUMT), the industry’s largest provider of learning and business performance technologies, services and processes, in conjunction with its Brazilian reseller, MicroPower, today announced that Banco Bradesco, Brazil’s largest private bank and one of the world’s top 100, has chosen SumTotal’s TotalLMS to deliver and manage learning for 78,000 employees and an extended network of insurance agents and other affiliates that sell the bank’s financial products.

According to Julio Marques, Bradesco’s training director, the bank chose SumTotal because it easily and seamlessly integrated into Bradesco’s technology infrastructure structure and organizational learning methodology. “We have built a repository of more than 350,000 online courses over the past four years and we believe that SumTotal is the ideal choice to enable us to manage that content, expand and enhance our training and increase the amount of participation in the program,” said Marques.

“Based on broad-ranging experience working with financial services companies, we have evolved SumTotal’s solutions to address the specific needs of this type of organization. These needs include reaching functionally and geographically diverse groups of employees, and delivering consistent, timely information to help increase proficiency and productivity at every level,” said R. Andrew Eckert, SumTotal CEO. “We are pleased to be helping Banco Bradesco meet the goals of unifying its organization and readying employees, agents and resellers to deliver top-quality customer service and to respond to the competitive and ever-changing consumer demands and regulatory requirements of the financial services industry.”

About Banco Bradesco

Banco Bradesco is the largest commercial bank in Brazil and among the top 100 banks in the world, with more than 11.000 points of sale and 15.4 million customers across Brazil, Argentina, New York, Japan, Luxembourg and the Cayman Islands. Banco Bradesco offers personal and commercial loans, Internet banking, insurance, credit card services, leasing services, annuities, pension plans and international services including letters of credit. A leader in customer service, Banco Bradesco won 35 awards in 2003 for customer service and quality, including the Global Finance Award for Best Bank in Brazil.

About MicroPower

Founded in 1994, MicroPower is the leading e-Learning solutions provider in the Brazilian market. MicroPower has represented Docent in the country since 2001, providing and integrating technology platforms, on-line course content and specialized consulting services. MicroPower also promotes the e-Learning Brazil - Conference & Award, considered Latin America’s largest and most important e-Learning event with an objective to develop the e-Learning market. In addition, MicroPower has developed and distributed "best of breed" technologies like machine translators, text to speech, and Virtual Vision (Smithsonian Award 1998/1999 finalist), a screen reader that enables the Visually Impaired to access computer applications and Internet with autonomy.

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.

Safe Harbor Statement/ Forward-Looking Statements

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.