SumTotal Wins $1.5 Million Contract with U.S. Army Defense Ammunition Center

MOUNTAIN VIEW, Calif.--SumTotal^® Systems , the largest provider of talent and learning solutions, received a $1.5-million subcontract during its third quarter for continued support of the U.S. Army Defense Ammunition Center’s (DAC) current and future global training initiatives. SumTotal will provide hosting operations to support the DAC’s migration to an upgraded version of the SumTotal learning management system (LMS) and learning content management system (LCMS). This upgrade will also expand the capacity of DAC’s student population to well over 100,000 users worldwide. SumTotal serves as a sub-contractor to SI International of Reston Va., a provider of information technology and network solutions, on this award.

The McAlester, Okla.-based DAC will use SumTotal Enterprise Suite™ Version 7.2, an integrated LMS/LCMS software platform, to instruct U.S. military personnel on the proper handling of ammunition, explosives safety and logistics support to Department of Defense military and civilian personnel, other federal agencies and military students from allied nations. SumTotal’s LMS delivers online education via the Internet, and its LCMS helps course designers rapidly create an array of content, including simulations.

“The LMS can prepare students for face-to-face training, and also provide a lifeline to their lessons after they get to the field,” said William S. Scott, distance-learning supervisor – DAC Training Directorate. “This helps keep students stay connected to their newly acquired skills, and it increases retention. This is crucial to mission readiness and success.”

The primary focus of the DAC is to support ammunition readiness for the 21st century war-fighter as well as supporting the global war on terrorism. With the support of SI International and SumTotal, the DAC currently provides web-based training to over 25,000 students on an annual basis.

“The Defense Ammunition Center is a leader in constructing innovative solutions that are increasing the readiness of the arms, ammunition and logistics community.” said James Gill, director of Government Solutions for SumTotal. “It is a privilege for us to be part of this mission-critical project, and we are honored that DAC and SI International selected us as a partner to continue this important work in support of our war-fighters.”

In 2004, SI International won an initial contract to provide an enterprise-wide learning solution used to evaluate DAC training courses, create web-based training development processes, develop a long term Training Plan, and implement the SumTotal LMS/LCMS. Under the new contract, of which SumTotal is a sub-contractor, SI International will provide continued support for previous tasks, implementation of an Enterprise Resource Planning training solution, and design and development of an Arms, Ammunition and Explosives (AA&E) web portal. The contract was awarded under the Millennia Lite Functional Area 2 GSA contract vehicle and has a one-year base period with four one-year option periods. The contract value is approximately $9 million, if all options are exercised.

About SumTotal Systems, Inc.

SumTotal Systems, Inc. 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.

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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 LMS and SumTotal LCMS; (ii) the inability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of SumTotal LMS and SumTotal LCMS; (iii) the acceptance of SumTotal LMS and SumTotal LCMS and future product offerings; (iv) the ability to successfully implement SumTotal Systems' solutions; (v) the ability to translate the use of SumTotal Systems’ solutions to increased efficiency and consistency and fast delivery of training and content; (vi) the ability to successfully address technological developments and standards; (vii) the need to continue to expand product distribution and services offerings; and (viii) 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 November 1, 2006, and SumTotal does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.