SumTotal Systems Positioned in Leader Quadrant in Magic Quadrant for e-Learning Suites

Placement based on evaluation of Completeness of Vision and Ability to Execute

MOUNTAIN VIEW, CA (August 18, 2005) – SumTotal™ Systems (NASDAQ: SUMT), the largest provider of learning and business performance technologies and services, today announced that it has been placed in the Leader Quadrant in the Magic Quadrant for e-Learning Suites** based on an evaluation of its completeness of vision and ability to execute. The report was published by Gartner, Inc (NYSE:IT), a premier research and advisory firm.

To develop the e-Learning Suites Magic Quadrant, Gartner assessed vendors on their completeness of vision and ability to execute, placing them in one of four quadrants: Niche Players, Challengers, Visionaries and Leaders. The report characterizes companies in the Leader quadrant as having the highest combined measures of Ability to Execute and Completeness of Vision.

Gartner evaluated vendors, such as SumTotal Systems, that offered “ more-effective components and capabilities generally improved in the areas of LCMS and content authoring tools, analytics, and professional services (such as for planning, implementation and content).” Gartner also weighed platform, architecture, modularity, interoperability with other e-learning modules, and integration with other business applications such as HRMS as part of its Completeness of Vision assessment.

SumTotal is positioned in the Leader Quadrant in the report. According to Gartner, vendors listed in the Leader Quadrant are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market. The report also cites viability, installed base, geographic distribution capabilities, customer support and satisfaction and strength of management team as criteria for companies to be positioned in the Leader Quadrant.

“The e-learning suite market is evolving rapidly, as companies now demand more comprehensive suites,” the report said. “ When you evaluate e-learning vendors and their suites, focus on modularity (that is, whether you can choose which individual components to implement first, and whether you can easily add new components later on); integration (among the components within the suite and with third-party e-learning products and business applications); and personalization (the ability to tailor e-learning implementations to suit the particular needs of departments or individuals). With this approach, you can focus on obtaining modules that are more relevant to your business goals and can, therefore, produce better results.”

“Being positioned in the Leader quadrant in the Gartner report is immensely gratifying because we see it as another proof point that SumTotal, its products, services and processes continue to meet the needs of an increasingly sophisticated marketplace,” said R. Andrew Eckert, SumTotal CEO. “Our platform is progressively becoming more ‘mission-critical’ to our customers, and is helping to address a whole range of complex business issues that go far beyond what e-learning was originally envisioned to accomplish. I believe our position reflects our success in helping these organizations use our technology to solve critical business issues and generate real bottom-line impact.”

About the SumTotal Enterprise Suite

Providing unparalleled breadth in application and depth in functionality, the SumTotal Enterprise Suite is the industry’s most comprehensive, globally scalable learning and business performance offering, and the only one to combine learning management, learning content management, in-depth analytics and other mission-critical applications on a single, integrated platform. The SumTotal Suite promises more flexible, rapid, strategic delivery and management of learning activities; unprecedented options for measuring learning impact on organizational goals and objectives; and unique interoperability and integration capabilities to dramatically reduce the cost of ownership.

About SumTotal Systems

SumTotal Systems Inc. (NASDAQ: SUMTE) is the largest provider of learning and business performance technologies and services. SumTotal deploys mission-critical solutions that align learning with organizational goals to generate significant bottom-line results. With more than 12 million users in 37 countries, SumTotal has helped accelerate performance and profit for more than 675 of the world’s best-known companies and government agencies, including the US Army, Air Force, Navy and Coast Guard, Microsoft, United Airlines, the State of California, DSHS, Vodafone, Aetna, Accenture, USDA, Cendant, Harley-Davidson, Wyeth, Wachovia and D & B. Headquartered in Mountain View, CA, SumTotal has offices throughout the US, as well as in London, Paris, Heidelberg, Sydney, Tokyo and Hyderabad, India. For more information on SumTotal’s solutions and services, visit www.sumtotalsystems.com.

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’ new product, SumTotal Enterprise Suite 7.1. 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) unknown errors or bugs in SumTotal Enterprise Suite 7.1; (ii) inability to fix in a timely fashion unanticipated bugs, errors or defects that material impact the functionality or usability of SumTotal Enterprise Suite 7.1, or unanticipated problems in customer upgrades to SumTotal Enterprise Suite 7.1 from prior SumTotal products (iii) unexpected shipment problems or delays of SumTotal Enterprise Suite 7.1; (iv) customers or partners delaying purchasing or upgrade decisions until there is widespread market acceptance of SumTotal Enterprise Suite 7.1; (v) the acceptance of SumTotal Enterprise Suite 7.1 and future product offerings; (vi) the ability to successfully implement SumTotal Systems’ solutions; (vii) the ability to successfully address technological developments and standards; (viii) ability to successfully manage growth, significant current and expected additional competition, and the need to continue to expand product distribution and services offerings; and (ix) 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 November 15, 2004 and its Form 8-Ks filed on February 2, March 8, 10 and 17, and April 6, 20 and 28, 2005. SumTotal Systems assumes no obligation to update the information in this press release."



**Magic Quadrant for E-Learning Suites, 2004, J. Lundy, W. Arevolo, August 2005, Gartner, Inc.

The Magic Quadrant is copyrighted 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.