SumTotal Serves Up a Learning Management Solution for Leading Convenience Store and Food Retailer Sheetz

Mountain View, Calif. – October 18, 2006 – SumTotal® Systems (Nasdaq: SUMT), the largest provider of talent and learning solutions, announced that Sheetz, Inc., one of the top convenience retailers in the nation, has deployed a SumTotal learning management system (LMS). The LMS is an enterprise software platform for managing talent as well as analyzing, storing and delivering learning. Sheetz is using the software to instruct more than 10,000 employees, across more than 320 stores, on safety, customer service and preparing food.

In terms of getting a return from its investment, Sheetz has a number of objectives: to reduce the time it takes to get an employee certified in their job area, to cut the transaction time at point of sale and to boost the accuracy of orders.

This is a new investment in technology for Sheetz, as there was previously no LMS in place. George Depetro, Sheetz senior instructional designer and a member of a multi-functional LMS project implementation team, said, “We want to drive consistency. We want people to get the same great product across the six states we serve. There’s a need for rapid e-learning because we want to quickly turn around programs to our employees. With the SumTotal system in place, we believe we can train our people at the point in time when they need it most.”

The LMS also will allow Sheetz to closely monitor employee performance and ensure adequate training for those that need additional help. Depetro said, “We plan to measure a lot of our stores’ performance simply by analyzing what happens at the automated point-of-sale devices. If we see workers, or managers, who aren’t performing on par with other stores’ personnel, we can flag courses in the LMS to help those individuals bridge the gap with training.”

The LMS will allow a greater degree of control for compliance. This will help Sheetz’s management meet a commitment to high standards. One example of this will be delivering instruction to all Sheetz employees on their responsibilities when selling restricted goods such as alcohol and tobacco.

In the short term, the use of the LMS will be concentrated on delivering courses that show employees how to assemble food such as hot or cold sandwiches. The courses also show workers how to run point-of-sale devices. Additional courses will explain why it’s necessary to use exact proportions of meats, cheeses and condiments for food preparation, all in easy-to-follow and relevant ways.

Although the emphasis is currently on training employees in the network of stores, in the longer term, Sheetz plans to use the LMS to deliver management training.

The LMS will also give Sheetz employees the option to go back to a course and get more learning when they need it. With an increased understanding of processes and procedures, Sheetz believes employee turnover should drop too. The LMS will deliver courses that teach workers how to handle multiple priorities, which will improve customer service; workers will know what to expect when a store suddenly becomes very busy.

“Delivery of consistent and efficient in-store training is a critical business problem for all retailers,” said Josh Bersin, president and founder of Bersin & Associates, a research and advisory firm specializing in enterprise learning and talent management. “An integrated, easy-to-use LMS platform such as SumTotal’s solution provides benefits at all levels. Corporate executives can get up-to-the-minute information on critical compliance training for stores and regions; operational managers can track employee progress and course completions; and employees are more knowledgeable and receive the just-in-time training needed to do their jobs.”

Sheetz selected the SumTotal LMS because, as George Depetro explained, “The SumTotal LMS is a great fit for our needs. Being a success in our industry means Sheetz is a flexible and responsive organization that prides itself on quality and consistency. Our new SumTotal LMS reflects all of these qualities and will allow us to continue to grow our business and develop our staff, safe in the knowledge that our standards will never be compromised.”

About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ: SUMT) is the largest provider of talent and learning solutions. SumTotal deploys mission-critical solutions that align talent and knowledge with organizational processes 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 in the United States, London, Paris, Frankfurt, Singapore, Sydney, Tokyo, Hong Kong and Hyderabad. For more information about SumTotal's products and services, visit www.sumtotalsystems.com.

SumTotal and the SumTotal logo are trademarks or registered trademarks of SumTotal Systems Inc. or its affiliates in the United States or other countries. Other names may be trademarks of their respective owners.

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. 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 LMS; (ii) the inability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of SumTotal LMS; (iii) the acceptance of SumTotal LMS and future product offerings; (iv) the ability to successfully implement SumTotal Systems' solutions; (v) the ability to translate the use of SumTotal LMS to increased efficiency and consistency and fast delivery of training; (vi) the ability to translate a greater degree of compliance control and monitoring of employee performance from the use of SumTotal LMS to adequate training provision for those needing additional help and a guaranteed commitment to high standards; (vii) the ability to translate an increased understanding of processes and procedures from the use of SumTotal LMS to decreased employee turnover; (viii) the ability to successfully address technological developments and standards; (ix) the need to continue to expand product distribution and services offerings; (x) the ability to translate the use of SumTotal LMS to business growth; and (xi) 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 on Form 10-K filed on March 28, 2006, its quarterly report on Form 10-Q filed on August 9, 2006, Form 10-Q/A filed on September 15, 2006, its Form S-3/As filed on September 28, 2006 and October 2, 2006, and its Form 8-Ks. SumTotal Systems assumes no obligation to update the information contained in this presentation or discussed in today’s meetings. The forward-looking statements contained in this release are made as of October 18, 2006, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.