SumTotal Positioned in the Leaders Quadrant for the 2008 Corporate Learning Systems Magic Quadrant

Evaluation Based on Completeness of Vision and Ability to Execute

Mountain View, CA – July 7, 2008 – SumTotal® Systems, Inc. (NASDAQ: SUMT), the market leader and global provider of talent development solutions, today announced that it has been positioned in the Leaders Quadrant by Gartner, Inc. in the 2008 'Magic Quadrant for Corporate Learning Systems’ report by Carol Rozwell and James Lundy, June 30, 2008.

“We are thrilled to be recognized in the Leaders Quadrant by Gartner in its Magic Quadrant report”, said Don Fowler, chief executive officer of SumTotal. “SumTotal continues to innovate and focus on customer success in the corporate learning and broader talent development market. We consider our positioning by Gartner confirmation of the SumTotal commitment to deliver revolutionary products and a complete solution to the most pressing talent development challenges of organizations, large and small.”

Gartner defines Leaders as companies that “not only meet the market’s current requirements, which are continually changing, but also anticipate future requirements. Also fundamental is the ability to articulate how they will address these requirements as part of a vision for an expanded CLS. In addition, leaders have a proven track record of financial performance and an established market presence. Their installed base gives them a strong presence in the CLS market, and they demonstrate continued growth in customers and revenue. In terms of vision, they are perceived as thought leaders, with well articulated plans for product development, marketing and channel support…”.

SumTotal recently announced the launch of SumTotal 8.0; the industry’s only unified Talent Development Suite. With the benefit of over 20 years of experience and best practices across industries, SumTotal 8.0 puts best-in-class capabilities in the hands of managers, employees, and administrators. It allows organizations to tailor their talent solutions to drive their unique business needs, instead of having to tailor their business needs and processes to fit their talent solutions. Supported by SumTotal’s innovative Anytime, Anywhere Access capabilities and a unique integration framework, the SumTotal Talent Development Suite provides the power to automate organizations’ most sophisticated processes, the simplicity for users and administrators to start now, and the luxury of not having to compromise one for the other. For more information regarding Unified Talent Development, please visit www.sumtotalsystems.com.

About the Magic Quadrant
The Magic Quadrant is copyrighted June 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ: SUMT) the market leader and global provider of talent development solutions. SumTotal deploys mission-critical solutions designed to drive learning, 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 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, including, but not limited to, the anticipated benefits, results and performance of SumTotal's products and solutions, such as SumTotal 8.0 . 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 SumTotal 8.0 ; (ii) the acceptance of SumTotal's software suite and future product offerings, including SumTotal 8.0; (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 8.0 or 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 SumTotal’s annual report on Form 10-K for the year ended December 31, 2007, its quarterly report on Form 10-Q for the quarter ended March 31, 2008, and its Form 8-Ks. The forward-looking statements contained in this release are made as the date of this release, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.