Stanford Hospital & Clinics Taps SumTotal’s Enterprise Software to Support Rollout of Clinical Information System

MOUNTAIN VIEW, Calif. – August 30, 2006 – SumTotal® Systems, Inc. (Nasdaq: SUMT) announced that Stanford Hospital & Clinics has purchased SumTotal’s LMS 7.2, which is an enterprise platform solution for analyzing, storing and delivering learning over the Internet. Stanford Hospital & Clinics will use the software, initially, to deliver an array of IT training to support the rollout of a major clinical information system, and subsequently to support all IT training.

Stanford Hospital & Clinics is recognized as one of "America's Best Hospitals" and is ranked #13 in the United States by U.S. News & World Report.

According to SumTotal, health care organizations use its solution to reduce not only the time it takes to develop a workforce but also the costs associated with delivering learning and developing talent. SumTotal says its products also simplify regulatory compliance audits. Health care organizations have bought SumTotal’s technology to streamline the delivery of strategic messages linked to mergers and acquisitions, policy changes and new services.

About Stanford Hospital & Clinics

Stanford Hospital & Clinics is a non-profit, academic medical center known for advanced patient care. The 613 bed hospital in northern California consistently ranks among the top in the nation in surveys by consumers and health professionals. The hospital, in cooperation with the Stanford University School of Medicine, has pioneered medical advances that save lives and protect against disease. For more information please visit www.stanfordhospital.com.

About SumTotal Systems, Inc.

SumTotal Systems, Inc. (NASDAQ: SUMT) is the largest provider of talent, learning and business performance technologies and services. SumTotal deploys mission-critical solutions that align learning with organizational and business goals to generate significant bottom-line results. With more than 17 million users worldwide, SumTotal has helped accelerate performance and profits for more than 1,500 of the world’s best-known companies and government agencies including Accenture, Aetna, Cendant, DaimlerChrysler, Delta Air Lines, Harley-Davidson, Microsoft, Novartis, PNC Bank, U.S. Army, U.S. Air Force, U.S. Navy, U.S. Coast Guard, U.S. Bancorp, United Airlines, Vodafone, Wachovia and Wyeth. SumTotal has offices throughout the United States, in London, Frankfurt, Paris, Singapore, Sydney, Tokyo, Hong Kong and Hyderabad, India. For more information about SumTotal's products and services, visit www.sumtotalsystems.com.

Safe Harbor Statement/ Forward-Looking Statements
This press release contains forward-looking statements. These statements represent SumTotal Systems' expectations or beliefs concerning future events. 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) the ability to successfully implement SumTotal Enterprise Suite 7.2; (ii) unknown errors or bugs in SumTotal Enterprise Suite 7.2; (iii) the inability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of SumTotal Enterprise Suite 7.2; (iv) the ability to successfully translate the implementation and integration of SumTotal Enterprise Suite 7.2 into reduced costs and efficiency gains; (v) the acceptance of SumTotal Enterprise Suite 7.2 and future product offerings; (vi) the ability to successfully address technological developments and standards; (vii) the ability to successfully manage growth, significant current and expected additional competition, and the need to continue to expand product distribution and services offerings; 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 the company’s annual report for fiscal year 2005 on Form 10-K filed March 28, 2006, the company’s quarterly report on Form 10-Q filed on August 8, 2006, and its Form 8-Ks. SumTotal Systems assumes no obligation to update the information in this press release.