SumTotal Signs Partnership with China’s Great Wall Computer Software and Systems

Beijing – October 26, 2006 – SumTotal® Systems (Nasdaq: SUMT), the largest provider of talent and learning solutions, and Great Wall Computer Software and Systems Inc., Ltd. announced in a signing ceremony at the Century Technology and Trade Plaza that Great Wall Software will serve as SumTotal’s first Chinese “value added distributor.”

Founded in 1993, Great Wall Software, with 2005 annual revenues of more than US$73 million, is widely known in China as a state-owned systems integrator that has carried out a number of large-scale projects for employers including China Post, People’s Bank of China and the Beijing Municipal Bureau of Health. Along with offering IT products and services, Great Wall Software staffs a training center to provide technical training, design training plans and administer testing services. With approximately 700 employees, Great Wall Software will offer SumTotal the benefit of a large sales force and software implementation team that work with customers across China.

“We feel we can truly establish SumTotal in China,” said Li Zebin, general manager for Great Wall Software. “We look forward to working closely with SumTotal to take advantage of its sales, marketing and technical support. And with SumTotal’s software, we believe we can win a considerable share of the market for talent and performance management in China.”

“Great Wall Software has a remarkable amount of experience in both the Chinese public and private sector,” said Jack Kramer, SumTotal’s vice president and general manager for International. “They know the IT challenges that large, Chinese companies face each day, and they see tremendous potential in helping their customers drive change by better managing talent.”

According to a March 2006 report from researchers at IDC, the corporate learning market in Asia/Pacific has “enormous growth potential.” IDC’s forecast goes on to say that the Asia/Pac market’s infancy is defined by the lack of clearly designed solutions and well-executed partnerships.

“We feel today’s announcement is the first step toward developing the sort of well-executed partnership that can capture significant market share in China for SumTotal,” added Kramer. “Chinese companies see tremendous value in transforming their organizations and workforces to compete on a global scale and meet WTO and other global business requirements.”

Kramer said, “As a partner of Microsoft, IBM and dozens of Chinese firms, Great Wall Software offers our China sales team a leading market position and the resources to develop our channel partnerships and customer base.”

“Chinese companies and government are beginning to recognize the value of aligning talent and performance management for driving a workforce to meet an employer’s most important goals,” added Li. “Employers are starting to see how talent and learning management systems can help them meet regulations, communicate business processes and identify top performers. We believe today’s partnership will spell success in China for both Great Wall Software and SumTotal.”

For Chinese organizations, forces inside and outside of China are driving efforts to become competitive on a global scale. This means not only opening China’s markets to international competition but also expanding Chinese ventures to compete in new markets overseas. In December of 2006, for example, the World Trade Organization has called for China to open its internal banking market to foreign competition. As China competes with foreign companies, Chinese managers see the importance of meeting new demands from customers and strengthening the talents and skills of employees.

About Great Wall Software and Systems Inc., Ltd.
Great Wall Computer Software and Systems Inc., Ltd. (Great Wall Software) is a renowned system integration services and solutions provider in China. Founded in 1993 with registered capital of RMB 167 million, Great Wall Software is one of the core divisions of China Electronics Corporation (CEC). For more information about Great Wall Software, visit http://www.gwssi.com.cn

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 registered trademarks or trademarks of SumTotal Systems, Inc. and/or its affiliates in the United States and/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, both in the United States and abroad; (iv) the ability of both SumTotal’s employees and Great Wall Software’s employees to successfully implement SumTotal Systems' solutions; (v) the ability to successfully translate the partnership between SumTotal and Great Wall Software into significant market share for SumTotal in China; (vi) the ability to translate the use of SumTotal LMS to increased efficiency and consistency and fast delivery of training; (vii) the ability to successfully address technological developments and standards both in the United States and abroad; (viii) 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 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 26, 2006, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.