SumTotal Transforms E-Learning for Tencent, One of China's Largest Internet Brands

Hong Kong – October 29, 2007 – SumTotal® Systems, Inc. (Nasdaq: SUMT) announced that Tencent, a leading China-based Internet and telecom value-added service provider, will use SumTotal's talent management software to transform e-learning capabilities for Tencent’s 3,000 employees. Tencent, listed on the Hong Kong Stock Exchange (0700.HK), hosts Asia's number one – and the world’s third most popular – instant messaging service, with over 270 million Chinese users on its QQ messaging service platform.

To date, Tencent has purchased SumTotal's TotalLMS™ – a learning management system (LMS), which delivers and tracks education via the Internet -- as well as ToolBook®, which is SumTotal’s solution for developing software simulations and e-learning content. With these products, Tencent aims to revitalize its e-learning system, Q-Learning, to better deliver strategic, cultural and procedural information, while improving employee productivity and enhancing customer service.

“Tencent is founded on innovation, and this innovation stems from our people. Therefore, staff training is a key focus for the company. In addition to traditional training and learning methods, we have been looking forward to implementing a structured and comprehensive e-learning system,” said Xi Dan, director of Human Resources for Tencent. “Following an extensive evaluation, we found SumTotal’s TotalLMS to have all the necessary tools for us to deliver, track and analyze enterprise learning now and into the future. ToolBook will give us the ability to create training content that will run seamlessly on the TotalLMS platform.”

Tencent CEO Ma Huateng has said that "staff are the company‘s primary asset” and significant investments have been allocated for staff training programs each year; however, the speed with which Tencent’s business is growing has meant it requires an even more robust platform in order to accelerate the speed with which the company can develop its staff’s skills.

“Our people receive specific training when they first enter the company, including a series of foundation courses that acquaint them with the company’s core business, strategy and culture. We believe SumTotal can help us deliver these online courses and build in the assessments that will tell us how well our employees are learning what they need to know to provide superior customer service," said Xi.

Using TotalLMS and ToolBook, Tencent can create standards-based simulations, tutorials, assessments, courses and interactive content that the company believes will play a large role in advancing a positive working environment, focused on innovation and excellence.

With SumTotal, Tencent will transform its Q-Learning system into a comprehensive learning tool that will be used by front-line managers, staff and training managers. In revitalizing its Q-Learning system, Tencent has a number of specific goals including:

• Delivering company strategy, culture and procedures rapidly and accurately to every employee via training


• Transforming individual employee experience and expertise into tangible information that can be used broadly across the company


• Increasing the efficiency and lowering the costs of training operations


• Providing training capabilities anytime, anywhere

“TotalLMS can handle more than one million users across multiple sites, so its scalability was never a question for Tencent. And the addition of ToolBook means Tencent can develop online training that is guaranteed to run smoothly on TotalLMS,” said Alex Raymond, SumTotal’s vice president, Asia-Pacific. “Our contract with Tencent is further evidence that SumTotal’s strategy for reaching and growing new international markets is working.”

The implementation of TotalLMS is in process and expected to be up and running later this year.

About Tencent
Tencent aims to enrich the interactive online experience of Internet users in China by providing a comprehensive range of Internet and wireless value-added services. Through its various online platforms, including Instant Messaging QQ, web portal QQ.com, QQ Game portal, multi-media blog service Qzone and wireless portal, Tencent services the largest online community in China and fulfills the user’s need for communication, information, entertainment and e-Commerce on the Internet.

Tencent currently operates three principal lines of business: Internet value-added services, mobile and telecommunications value-added services and online advertising. Shares of Tencent Holdings Limited are traded on the Main Board of the Stock Exchange of Hong Kong Limited, under stock code 700. For more information, please visit www.tencent.com/ir.

About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ: SUMT) is a global provider of talent and learning management solutions. SumTotal deploys mission-critical solutions designed to align goals, develop skills, assess performance, plan for succession and set compensation. SumTotal’s solutions aim to accelerate performance and profits for more than 1,500 companies and governments of all sizes, including six of the world’s 10 biggest pharmaceutical makers, six of the 10 largest automotive companies in the world, four of the five branches of the U.S. Armed Forces, three of the world’s top five airlines, five of the six largest U.S. commercial banks and two of the world’s top five specialty retailers. Mountain View, Calif.-based SumTotal has offices across Asia, Australia, Europe and North America. For more information about SumTotal's products and services, visit www.sumtotalsystems.com.

SumTotal, the SumTotal logo, and ResultsOnDemand 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 / Forward-Looking Statements
Information in this press release contains forward-looking statements including, but not limited to, the anticipated benefits, results and performance of SumTotal’s products and solutions, such as SumTotal TotalLMS and ToolBook, and SumTotal’s international growth and initiatives, including in Asia. These statements represent SumTotal Systems' expectations or beliefs concerning future performance and 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) the ability to successfully manage and increase growth in international markets, including in Asia, significant current and expected additional competition, and the need to continue to expand product distribution and services offerings; (ii) the acceptance of SumTotal’s software suite, including SumTotal TotalLMS and ToolBook, and future product offerings; (iii) unknown errors or bugs in SumTotal’s software suite; (iv) the ability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of SumTotal’s software; (v) the actual benefits and performance of SumTotal TotalLMS and ToolBook; (vi) the ability to successfully address technological developments and standards; and (vii) other events and other important factors disclosed previously and from time to time in SumTotal’s filings with the Securities and Exchange Commission, including the company’s annual report for fiscal year 2006 on Form 10-K filed on March 16, 2007, its quarterly report on Form 10-Q filed on August 7, 2007, its Prospectus Supplement filed on Form 424B2 filed on May 21, 2007, 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 the date of this press release, and the company assumes no obligation to update the information in this press release to reflect events or circumstances occurring after the date of this release.