SumTotal Signs Agreement with Beijing-based Founder Order

Beijing – January 31, 2007 – SumTotal® Systems (Nasdaq: SUMT), the largest provider of talent and learning solutions, announced that it has signed a reseller agreement with Beijing Founder Order Computer System Co., Ltd., a systems integrator and exclusively owned subsidiary of Beijing Founder Group Corporation (Founder Group).

According to SumTotal, the agreement with Founder Order reinforces the Mountain View, Calif.-based software maker’s push to sell its learning and performance management platform to two of China’s largest sectors: banking and government.

“Forces inside and outside of China are driving Chinese employers’ efforts to become competitive on a global scale,” said Yang Hin, sales manager for SumTotal China. “China is unlocking its markets to international competition and expanding Chinese ventures to compete in markets overseas.”

For example, as of December of 2006, the Chinese government opened the nation’s banking industry to foreign competition, which increased pressure on China-based banks to develop their talent to adapt to global business standards.

“We believe there’s an outstanding opportunity to market and sell SumTotal’s software to our financial and government customers in China,” said Qin Han, vice president of Founder Order. “Talent and performance management systems are becoming an increasingly important point of discussion for Chinese businesses. Systems such as SumTotal’s are seen as a way to gain competitive advantage on a global scale.”

Founder Group, with 20,000 employees and 2005 annual revenues topping US$3 billion, operates more than 20 subsidiaries that make and sell, among other things, software, computer hardware and financial services applications. Founder Order, which specializes in serving the banking industry as well as Chinese government, provides its customers with an array of products and services including IT consulting, project design and systems integration. Founder Order’s customers include Bank of China, Shanghai Stock Exchange, People’s Insurance Company of China, Ministry of Finance for the People’s Republic of China.

With approximately 500 employees, Founder Order will resell SumTotal’s software suite to customers across China. Founder Order will also develop a comprehensive marketing plan for selling SumTotal’s wares. The Beijing-based systems integrator’s staff technicians will also complete certification training in order to service SumTotal’s platform in China.

“Founder Order counts many of China’s largest employers as customers,” added Yang Hin. “They’ve established strong relationships with these employers and know not only their IT infrastructures but also the best ways for introducing them to systems for managing talent.”

According to Peter McStravick, a senior research analyst for IDC Learning Services, the corporate learning market in Asia offers opportunities for U.S.-based providers of talent management software.

“Companies like SumTotal have well-developed technology for developing the skills and competencies of an employer’s workforce,” added McStravick. “ China has many large companies with tens, even hundreds, of thousands of workers who must ratchet up their expertise to compete effectively on a global scale. An agreement like the one between Founder Order and SumTotal gives SumTotal a foothold to establish its value proposition and brand in China.”

“We believe this announcement, coming on the heels of the partnership we struck late last year with Great Wall Software, takes us another step forward in building our business across China,” said Alex Raymond, SumTotal’s vice president for Asia-Pacific. “We feel Founder Order will help us transform the way Chinese employers think about developing their staffs. Founder Order offers our China sales team a way to amplify the message that talent management systems can help Chinese employers meet regulations, communicate business processes and identify top performers.”

About Beijing Founder Order Computer System Co., Ltd.
Beijing Founder Order Computer System Co., Ltd., a leading IT service provider and Cisco Gold Certified Partner, is a state-certified, high-tech business and systems integrator that holds the ISO 9000 and CMML2 certificates. Its years of business and technical development, coupled with its top-notch quality-assurance system and well-structured R&D system, have created a foundation for the company ’s expansion. For more information, visit http://www.founderorder.com/english/about/leaderNew.aspx

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, including but not limited to, the size of the Chinese market, Founder Order’s ability to sell SumTotal products, and the ability of SumTotal to protect its proprietary information in China and elsewhere. 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 Founder Order’s employees to successfully implement SumTotal Systems' solutions; (v) the ability to successfully translate the reseller agreement between SumTotal and Founder Order 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 January 31, 2007, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.