SumTotal Upgrades Software-as-a-Service Offering

Mountain View, Calif. – September 25, 2006 – SumTotal® Systems (Nasdaq: SUMT), the largest provider of talent, learning and business performance solutions, has launched a new version of its “ResultsonDemand™” platform. The new ResultsonDemand is a software-as-a-service (SaaS) model that gives customers access to a hosted version of the software maker’s award-winning talent management suite – SumTotal Enterprise 7.2. The SumTotal 7.2 suite not only delivers learning over the Internet but also analyzes employee performance and compensation.

“We believe the new ResultsonDemand gives employers of all sizes a platform with flexible, usage-based pricing and some of the best features in the market,” said Jon Ciampi, vice president of marketing for SumTotal. “ResultsonDemand also offers hassle-free upgrades, support and maintenance.”

According to Gartner, “companies can use SaaS as a transition path to evaluate e-learning functionality as a service before implementing it as a product.” And, says Gartner, the “major advantage of SaaS in [the] workplace … is for applications supporting people’s ability to create and share knowledge.”

“We see ResultsonDemand as an easy-to-install platform that will appeal to any customers -- with limited budgets and IT resources – who are running a Pathlore or DKSystems platform,” said Ciampi. “But ResultsonDemand is also a product that large corporations can use for a single department, office or manufacturing plant.”

For customers purchasing ResultsonDemand, SumTotal will manage the maintenance, daily technical operation and support for the software.

With the new ResultsonDemand, customers will have, among other things, their own branded interface, management of online and classroom learning, detailed training records and the ability to track training content.

About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ: SUMT) is the largest provider of 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 / Forward-Looking Statement
Information in 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) unknown errors or bugs in ResultsonDemand and SumTotal 7.2; (ii) the inability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of ResultsonDemand and SumTotal 7.2; (iii) the acceptance of ResultsonDemand, SumTotal 7.2 and future product offerings; (iv) the ability to successfully implement ResultsonDemand, SumTotal 7.2 and hassle-free upgrades, support and maintenance for both; (v) the ability to successfully address technological developments and standards and changing client needs; (vi) 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 (vii) 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 annual report for fiscal year 2005 on Form 10-K filed March 28, 2006, the quarterly report for the quarter ended June 30, 2006, on Form 10-Q filed August 9, 2006, and Form 8-Ks. The forward-looking statements contained in this release are made as of September 25, 2006, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.