SumTotal Systems Expands Presence in Middle East and North Africa with New Partner HUMANSOFT

Human capital management company to make SumTotal Enterprise Suite and ToolBook authoring tool backbone of solution offering for organizations in wide variety of industry sectors

MOUNTAIN VIEW, CA (September 27, 2004) – Adding to its extensive, global partner network, SumTotal Systems (NASDAQ: SUMT), the industry’s largest provider of learning and business performance technologies, services and processes, today announced that it has signed HUMANSOFT FZ LLC, a division of HUMANSOFT Human and IT Investment Company and a specialist in information technology, human resources and training services, as its newest reseller partner covering the Middle East and North Africa.

HUMANSOFT will make the SumTotal Enterprise Suite, ToolBook simulation and content authoring tool and related services the backbone of integrated learning content and technology solutions it provides to corporate and government customers to help them develop and manage their workforces. HUMANSOFT customers are regional and multinational organizations with more than 1000 employees, in the government, financial, technical, aviation, energy and utility sectors. HUMANSOFT also will work with SumTotal to localize the SumTotal Suite for the Arabic language.

“Human capital is the most important asset for any organization in today’s knowledge-based economy,” said Fahad Al-Othman, chairman and managing director for HUMANSOFT. “Organizations that realize the strategic value of ongoing employee development, driven by focused, on-demand training, will excel in the marketplace and stay ahead of the competition. Working with SumTotal, we aim to provide organizations with solutions that allow them to align learning initiatives with organizational goals and objectives and to achieve significant increases in business performance and results.”

“Our goal is to raise the market’s awareness of the vital role learning plays in the success of both individual employees and enterprises as a whole,” said Mohamad Hassoun, general manager for HUMANSOFT Learning Solutions, MENA. “SumTotal’s technology enhances the capability of our solutions to help organizations close skills gaps, facilitate the management of employee development plans, track compliance against required certifications and measure the overall impact training has on each employee’s productivity. As the industry leader, SumTotal will give us a leading edge in our marketplace and enable us to provide the best possible products and services to organizations in our region.”

“SumTotal continues to build strong alliances with partners around the world who lead their regions in a wide range of educational, consulting and technology specialties,” said R. Andrew Eckert. “Working with HUMANSOFT will allow us to bring our solutions to a much broader audience in the fast-growing Middle East and North African learning markets and will enable users throughout the Arab-speaking world to maximize the use of our learning systems in their own native language.”

About HUMANSOFT

Based in Kuwait, with offices in Qatar and Dubai, HUMANSOFT Human and IT Investment Company is an award-winning leader in training, learning and human development. HUMANSOFT is comprised of eight business entities and a regional force of more than 950 knowledge workers. In addition to SumTotal solutions, HUMANSOFT FZ also is a master distribution partner of THOMSON NETg for the Middle East, North Africa and Pakistan., with exclusive rights for courseware localization and courseware development in more than 23 countries. To learn more about HUMANSOFT, visit http://www.HUMANSOFT.ae/portal/home/.

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.