To Reach “Extended Enterprise” of Learners, SumTotal Introduces New Software for Managing Talent

MOUNTAIN VIEW, Calif. – January 5, 2007 – SumTotal® Systems (NASDAQ: SUMT), the largest provider of talent and learning solutions, has released SumTotal Enterprise Suite™ 7.5, the newest version of its award-winning software, to train its clients’ “extended enterprise” of customers, partners and supply chain and distribution channels. SumTotal 7.5 is software that delivers and manages training for not only employees but also a wide range of audiences beyond an employer’s staff. Highlights of SumTotal 7.5 include: 1) a variety of ecommerce capabilities for managing the transactions tied to selling, buying, delivering and tracking training, 2) new capabilities for distributing and administering global learning in multiple languages, and 3) an array of reporting tools for analyzing, among other things, what people learn.

“We developed SumTotal 7.5 to give our clients a way to extend the management of training and talent beyond the walls of their organizations,” said Dave Crussell, chief operating officer of SumTotal. “We believe there is a significant business opportunity to help our 1,500 customers -- and many new clients – extend training to a wider ecosystem of constituents.”

In 2006, the Santa Rosa, Calif.-based eLearning Guild, a worldwide association of more than 20,000 elearning professionals, surveyed its members – a mix of executives, instructional designers and course developers – about the future of elearning. The Guild found that 82 percent of respondents felt they would increase their use of elearning in the next 12 months to provide education to their customers. Seventy-five percent of respondents said they would increase the use of elearning to train channel partners.

In a December 2006 Gartner report, titled “Forecast: E-Learning Suites and Management Systems Software, Worldwide, 2005-2010,” researchers wrote that “Organizations are increasing their investments in training activities, both within and across the extended enterprise.”

With the ecommerce capabilities in SumTotal 7.5, employers can sell either a single seat for a training class or an entire learning and development program for tens of thousands of learners. SumTotal supports multiple payment methods including credit card, purchase order, check and cash. SumTotal 7.5 also gives administrators a single hub to manage training of all kinds, whether the training is for employees or paying customers.

For employers with a global audience of customers, employees and partners, SumTotal 7.5 will give training administrators a way to create one, universal training record in a single language. But, with a few keystrokes, the administrator can translate this data into virtually any language the learners prefer. For example, with SumTotal 7.5, if a training administrator is creating an online catalogue of workplace safety classes in English, then she can convert this data into German, French, Japanese or virtually any other language for learners across the globe to access.

“SumTotal 7.5 enables learners to find the training they want, in the language they prefer,” said Bill Docherty, senior director of product management. “But our software also ensures that administrators working behind the scenes can track this same data in one language and one system.”

Along with the ecommerce and multilingual features in SumTotal 7.5, the new platform offers users a way to develop a wide range of reports for analyzing learning. For example, the software includes reporting tools that can: 1) examine the features of a training facility prior to starting a class, 2) analyze answers that test-takers provide, 3) scrutinize invoices and budgets for developing programs for managing talent, and 4) pinpoint what a learner’s level of know-how is vis-à-vis his or her peers.

“We believe SumTotal 7.5 provides our clients with the infrastructure to not only develop the talent of their employees but also improve the knowledge and skills of their partners and customers,” said Don Fowler, chief executive officer of SumTotal.

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. 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’s software suites and products, including SumTotal Enterprise Suite 7.5; (ii) the inability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of SumTotal’s software; (iii) the ability to successfully implement SumTotal Systems' solutions, including SumTotal Enterprise Suite 7.5; (iv) the acceptance of SumTotal’s software suites and future product offerings; (v) the ability to successfully manage and increase growth, significant current and expected additional competition, and the need to continue to expand product distribution and services offerings; and (vi) 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 November 9, 2006, its Form S-3/As filed on September 28, 2006, and October 2, 2006, and its Form 8-Ks. The forward-looking statements contained in this release are made as of January 5, 2007, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.