NEC Teams With U.S. Learning Management Systems Market Share Leader, SumTotal, to Release SaaS Learning Service

For Deployment in Major Securities Companies for Large-scale Employee Development

Santa Clara, Calif., March 20, 2008 - NEC Corporation of America, a premier provider of IT and network solutions and services, today announced that it has collaborated with SumTotal® Systems, the market share leader in learning management system revenue according to Bersin and Associates, an independent advisory firm, to develop a new SaaS (Software as a Service) learning service for enterprises that provides integrated support for employee development. NEC will commence marketing activities for the new service in Japan, as well as in the US through its subsidiary, NEC Corporation of America.

The new SaaS learning service operates in tandem with SumTotal’s ResultsOnDemand® learning management system, leveraging the service platforms of both SumTotal and NEC to deliver a globally accessible on-demand service that can be customized to meet the needs of NEC customers. Consulting services for talent management and development will also be offered in collaboration with ABeam Consulting Japan.

“NEC is pleased to be working with SumTotal, a leader in the Learning Management Systems market,” said Clay Swartz, general manager, Global Services of NEC Corporation of America. “Adding SaaS learning services to our portfolio ensures that our customers have access to the world-class tools they require for managing their business.”

NEC intends to enhance the structure of its service business, including its new SaaS-delivered learning service, in an effort to offer a greater portfolio of services and increase our overall value to our clients.

“As one of the leading vendors in Japan, we wanted a partner that can create an exceptional solution that uniquely addresses the needs in Japan,” said Donald E. Fowler, Chief Executive Officer of SumTotal. “With NEC, we can execute on our international strategy to deliver innovative products and services within the country and to a broader, global market.”

The new SaaS solution provides collective learning for enterprises with 10,000 employees or more, as well as global, multi-location learning in multiple languages. When compared with “homegrown” talent management systems of a similar scale, the NEC service format reduces deployment time up to 80% as estimated by NEC. It also offers flexible learning that adapts rapidly to changes in the business environment, including revisions to legislation and the addition of new operations. With talent data stored in high-security data centers, the service ensures the safe management of operations.

NEC intends to market the service to major corporations requiring large-scale collective learning solutions across multiple international bases.

The following are the major benefits of the new SaaS-delivered learning service:

1. Delivers a low-cost and safe learning environment for enterprises with a large employee base
   In addition to using the service platforms of both SumTotal and NEC to deliver collective learning for training programs designed for 10,000 employees or more, the service offers a secure learning environment that prevents information leaks by managing employee data in high-security data centers. The service format reduces deployment time by up to 80% when compared with similar talent management systems built/operated by client companies.
2. Realizes a flexible learning environment compatible with multi-lingual courses and variable learning content
   The e-learning system used by NEC’s new SaaS-delivered learning service offers 11 languages as part of the standard package (an additional 26 languages also available as an option), and allows for global delivery of content to multiple locations. Integrated management of different learning formats, including e-learning, group training and distance education, means course structures can be set to meet organizational or individual needs. NEC’s customization service realizes a flexible learning environment compatible with client needs through the addition of various functions, including the issuance and acceptance of IDs / passwords distributed to each employee, as well as access restrictions on selected learning content (e.g. courses delivered only on company workstations, courses accessible on home computers, etc.). 
3. Integrates talent management PDSA cycle
   NEC’s new SaaS solution allows enterprises to integrate conventional systems implemented and managed separately, such as e-learning, performance management and compensation and appraisal management, thereby gradually moving towards a continuum of talent management PDSA (Plan-Do-Study-Act) cycles. The service can also be readily incorporated with ERP solutions, such as SAP® and PeopleSoft®, to realize advanced talent management capabilities. 

On the back of recent legislative changes and the increasing diversification of business operations, companies are now finding it necessary to implement diversified learning programs and ensure information is delivered to employees quickly. From the perspective of developing and retaining talent, demand is also increasing for integrated talent management that packages education, performance management and compensation management functions. The new collaborative SaaS solution from SumTotal and NEC will be able to meet these critical market needs.

About NEC Corporation of America
NEC Corporation of America is a leading technology provider of network, IT and identity management solutions. Headquartered in Irving, Texas, NEC Corporation of America is the North America subsidiary of NEC Corporation. NEC Corporation of America delivers technology and professional services ranging from server and storage solutions, IP voice and data solutions, optical network and microwave radio communications to biometric security, virtualization and digital cinema solutions. NEC Corporation of America serves carrier, SMB and large enterprise clients across multiple vertical industries. For more information, please visit www.necam.com.

About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ: SUMT) is a global provider of learning, performance and talent 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 Statement/ 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 ResultsOnDemand. These statements represent SumTotal's 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 solutions, including without limitation ResultsOnDemand; (ii) the acceptance of SumTotal's software suite and future product offerings; (iii) the ability to successfully manage and increase growth, both within and outside of the United States, significant current and expected additional competition, and the need to continue to expand product distribution and services offerings; (iv) the actual demand and growth of the market for performance management products and services; (v) the inability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of SumTotal's software; (vi) the ability to successfully implement SumTotal's solutions in the future; (vii) the ability to successfully address technological developments and standards; and (viii) 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 November 8, 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 the date of this news release, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.