Reynolds and Reynolds Chooses SumTotal to Power Reynolds University Online

Leading software provider to automotive industry using SumTotal Suite to deliver software application training to North American dealerships

MOUNTAIN VIEW, CA (October 25, 2004) – SumTotal Systems (NASDAQ: SUMT), the industry’s largest provider of learning and business performance technologies, services and processes, today announced that The Reynolds and Reynolds Company (NYSE: REY), the leading provider of software and services to the automotive retailing industry, has selected the company for its Reynolds University (RU) Online solution.

Reynolds University provides training curricula to auto dealerships as well as professional development to company associates. RU Online is a Web-based learning environment for automotive dealerships that helps cost-effectively train new hires and refresh current employees in utilizing Reynolds dealer management systems and other software solutions.

“Reynolds has always been committed to delivering quality training to our customers and employees. In building RU Online, we wanted a strategy and a technology infrastructure that met dealerships’ needs for flexibility and accessibility,” said Adam Zaller, director of learning technologies at Reynolds. “Dealers want their employees to fully utilize our systems and they need a new-hire curriculum to help them combat high turnover. RU Online will help them easily train new hires, refresh existing employees and maximize system use and results.”

Reynolds will use the SumTotal Enterprise Suite™, including TotalLMS, TotalLCMS and other modules, to create a 24 x 7 learning environment that will enable dealers to maximize the use of Reynolds solutions and leverage their investment. The system will provide hundreds of courses and other learning activities. RU Online will be deployed across the U.S. and in Canada, where SumTotal has localized the SumTotal Suite to accommodate Canadian French.

“Looking ahead, SumTotal’s strong product roadmap also will allow us to easily adapt the solution to our company’s growth and the changing demands of our business,” said Zaller.

In addition to reaching dealers, RU Online will deliver, manage and measure personalized learning programs for Reynolds and Reynolds employees, all geared toward helping them become more proficient at their day-to-day jobs. Using SumTotal’s certification capabilities, Reynolds will use RU Online to certify customer-facing employees in the company.

According to Zaller, the company will closely monitor the impact of and satisfaction with RU Online by tracking increases in customer participation, system utilization and overall satisfaction with training effectiveness.

“RU Online differentiates Reynolds from the competition,” said Zaller. “By providing flexible, convenient training for our customers, we are shifting the paradigm of education in this industry and demonstrating the significant difference it can make on our customers’ bottom lines.”


About Reynolds

Reynolds and Reynolds ( www.reyrey.com ) is the leading provider of integrated solutions that help automotive retailers manage change and improve their profitability. Serving the automotive retailing industry since 1927, Reynolds enables OEMs and retailers to work together to build the lifetime value of their customers. The company's award-winning product, service and training solutions include a full range of retail and enterprise management systems, Web and Customer Relationship Management solutions, learning and consulting services, documents, data management and integration, networking and support and leasing services. Reynolds serves more than 20,000 customers. They comprise nearly 90 percent of the automotive retailers and virtually all OEMs doing business in North America. Reynolds serves automotive retailers and OEMs worldwide through its Incadea solution and a worldwide partner network, as well as through its worldwide consulting practice.

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 and federal and local government agencies, including Microsoft, the US Army, Cingular Wireless, US Air Force, Vodafone, Lucent, USDA, DSHS, 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. These statements represent SumTotal Systems’ expectations or beliefs concerning future events and include statements, among others, regarding SumTotal Systems’ estimated development and shipment date for its new product, SumTotal 7.0. 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 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. Readers of this press release are cautioned not to place undue reliance on any forward-looking statements. Additional factors that could cause actual results to differ include, but are not limited to (i) SumTotal Systems' limited operating history, and Docent's and Click2learn's history of losses; (ii) delay in development or shipment of our new product, SumTotal 7.0, anticipated to be released during the fourth quarter of 2004; (iii) customers or partners delaying purchasing or upgrade decisions until our new product, SumTotal 7.0, is released; (iv) acceptance of SumTotal Systems' current and future product offerings; (v) long sales cycles for closing software contracts and seasonality in purchasing decisions; (vi) an emerging and rapidly evolving market; (vii) adverse changes in general economic or market conditions; (viii) continued market uncertainty with respect to the merger and the challenges of integrating Docent and Click2learn into one company, and the ability to achieve anticipated synergies associated with the recent merger; (ix) dependence on the growth of SumTotal Systems' market and fluctuation in customer spending; (x) delays or reductions in information technology spending; (xi) the ability to attract and retain highly qualified employees, and the risk of losing employees, especially sales personnel, if the SumTotal 7.0 release date slips; (xii) intense competition in the marketplace causing, among other things, pricing pressure; (xiii) failure to continually implement requisite internal controls and procedures; (xiv) increase of litigation and their related costs; (xv) other market conditions that include risks and uncertainties such as risks associated with financial, economic, political, terrorist activity and other uncertainties; and (xvi) other events and other important factors disclosed previously and from time to time in SumTotal Systems' filings with the Securities and Exchange Commission, including the quarterly report filed on Form 10Q on August 12, 2004. SumTotal Systems assumes no obligation to update the information in this press release."