SumTotal Signs Partnership with China's Great Wall Computer Software and Systems

SumTotal(R) Systems(NASDAQ:SUMT), the largest provider of talent and learning solutions,and Great Wall Computer Software and Systems Inc., Ltd. announced in asigning ceremony at the Century Technology and Trade Plaza that GreatWall Software will serve as SumTotal's first Chinese "value addeddistributor."
   BEIJING--(BUSINESS WIRE)--Oct. 26, 2006--SumTotal(R) Systems
(NASDAQ:SUMT), the largest provider of talent and learning solutions,
and Great Wall Computer Software and Systems Inc., Ltd. announced in a
signing ceremony at the Century Technology and Trade Plaza that Great
Wall Software will serve as SumTotal's first Chinese "value added
distributor."

   Founded in 1993, Great Wall Software, with 2005 annual revenues of
more than US$73 million, is widely known in China as a state-owned
systems integrator that has carried out a number of large-scale
projects for employers including China Post, People's Bank of China
and the Beijing Municipal Bureau of Health. Along with offering IT
products and services, Great Wall Software staffs a training center to
provide technical training, to design training plans and to administer
testing services. With approximately 700 employees, Great Wall
Software will offer SumTotal the benefit of a large sales force and
software implementation team that work with customers across China.

   "We feel we can truly establish SumTotal in China," said Li Zebin,
general manager for Great Wall Software. "We look forward to working
closely with SumTotal to take advantage of its sales, marketing and
technical support. And with SumTotal's software, we believe we can win
a considerable share of the market for talent and performance
management in China."

   "Great Wall Software has a remarkable amount of experience in both
the Chinese public and private sector," said Jack Kramer, SumTotal's
vice president and general manager for International. "They know the
IT challenges that large, Chinese companies face each day, and they
see tremendous potential in helping their customers drive change by
better managing talent."

   According to a March 2006 report from researchers at IDC, the
corporate learning market in Asia/Pacific has "enormous growth
potential." IDC's forecast goes on to say that the Asia/Pac market's
infancy is defined by the lack of clearly designed solutions and
well-executed partnerships.

   "We feel today's announcement is the first step toward developing
the sort of well-executed partnership that can capture significant
market share in China for SumTotal," added Kramer. "Chinese companies
see tremendous value in transforming their organizations and
workforces to compete on a global scale and meet WTO and other global
business requirements."

   Kramer said, "As a partner of Microsoft, IBM and dozens of Chinese
firms, Great Wall Software offers our China sales team a leading
market position and the resources to develop our channel partnerships
and customer base."

   "Chinese companies and government are beginning to recognize the
value of aligning talent and performance management for driving a
workforce to meet an employer's most important goals," added Li.
"Employers are starting to see how talent and learning management
systems can help them meet regulations, communicate business processes
and identify top performers. We believe today's partnership will spell
success in China for both Great Wall Software and SumTotal."

   For Chinese organizations, forces inside and outside of China are
driving efforts to become competitive on a global scale. This means
not only opening China's markets to international competition but also
expanding Chinese ventures to compete in new markets overseas. In
December of 2006, for example, the World Trade Organization has called
for China to open its internal banking market to foreign competition.
As China competes with foreign companies, Chinese managers see the
importance of meeting new demands from customers and strengthening the
talents and skills of employees.

   About Great Wall Software and Systems Inc., Ltd.

   Great Wall Computer Software and Systems Inc., Ltd. (Great Wall
Software) is a renowned system integration services and solutions
provider in China. Founded in 1993 with registered capital of RMB 167
million, Great Wall Software is one of the core divisions of China
Electronics Corporation (CEC). For more information about Great Wall
Software, visit http://www.gwssi.com.cn

   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 trademarks or registered
trademarks of SumTotal Systems Inc. or its affiliates in the United
States 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. 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 Great
Wall Software's employees to successfully implement SumTotal Systems'
solutions; (v) the ability to successfully translate the partnership
between SumTotal and Great Wall Software 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 October 26, 2006, and
SumTotal does not assume any obligation to update such statements to
reflect events or circumstances occurring after the date of this
release.

    CONTACT: SumTotal Systems
             Bill Perry, 614-975-7538
             bperry[at]sumtotalsystems.com
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