SumTotal Systems Inks Partnership Deal with Stranix

Leading learning system provider to incorporate SumTotal Enterprise Suite into full-service solutions for improving employee and organizational performance

MOUNTAIN VIEW, CA (October 22, 2004) – SumTotal Systems (NASDAQ: SUMT), the industry’s largest provider of learning and business performance technologies, services and processes, today announced that it has added Stranix Co., a global provider of transformational learning services to its global partner network. Stranix will incorporate the SumTotal Enterprise Suite into its full-service solutions for improving employee and organizational performance.

The SumTotal Enterprise Suite will be a key component in Stranix’ solution offerings, including behind-the-firewall implementations, application hosting and solution outsourcing in five core service areas:

• Business Consulting
• Learning Technology
• Content Development and Integration
• Learning Transformation
• Solution Management and Support

Stranix chose SumTotal Systems as its premiere learning technology partner based on SumTotal’s industry-leading product line; its years of collaborative solution implementations in a wide variety of industry sectors; and a vision that focuses on improving business performance and results.

“The Stranix culture is based on a relentless pursuit of excellence. We are committed to providing our customers and partners with the right knowledge, skills, technologies and processes to meet their specific learning needs,” said Thomas Payne, president of Stranix. “SumTotal shares a similar dedication to quality solutions and customer success. It an ideal partner for us in establishing long-term customer relationships and helping meet specific business goals for our clients.”

“Stranix brings an impeccable understanding of e-learning, workflow and business processes to this partnership, making it a very strong addition to our alliance network,” said R. Andrew Eckert, SumTotal CEO. “By incorporating the SumTotal Suite as a core element in its solutions, Stranix will be able to offer customers a more powerful tool for increasing organizational proficiency, addressing tough business issues and making a lasting impact on the bottom line.”

About Stranix Co.

Founded in 2001, Stranix is a global provider of learning solutions and services that transform the business of established and emerging companies. By merging frontline-experience, industry-specific knowledge, and capabilities in business consulting, learning technology, content development and integration, learning transformation, and solution management and support, Stranix practitioners help clients realize their strategic vision and execute on that vision, thus increasing business and employee performance. For more information, visit www.stranix.com.

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, 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 businesoperations, 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.