SumTotal Adds Ravi Balwada as Vice President of On Demand Operations

Global Technology Veteran Supports Growth of On Demand Delivery Model

Mountain View, CA, August 12, 2008 — SumTotal® Systems, Inc. (NASDAQ: SUMT), the market leader and global provider of talent development solutions, today announced that Ravi Balwada has joined the executive staff as Vice President of On Demand Operations. In this new position, Balwada will be responsible for all operational aspects of SumTotal’s On Demand business including both the hosting and ResultsOnDemand® (RoD) operations.

Balwada brings more than 15 years of senior global technology business success to the newly created role. Most recently, Balwada served as Senior Director of Oracle’s On Demand Global Operations. Over the last three years, he oversaw the transformation of On Demand's operations into an adaptive, scalable, and highly optimized operating platform that delivers services to more than 1.7 million users.

“The growth in SumTotal’s On Demand business is critical to its future success as organizations seek additional delivery options beyond a perpetual license business model,” said Don Fowler, chief executive officer of SumTotal Systems. “Balwada has the ideal background to drive the necessary operational and business changes that will ensure that SumTotal continues to deliver exceptional products in the way our customers want to receive them.”

Prior to working at Oracle, Balwada conceived and built GTMG Inc., an IT services business with operations in China and the United States. Earlier, his reputation as a catalyst for new business growth resulted in him joining The Carlyle Group where he developed a compelling investment and growth strategy for early stage technology companies in Asia. Balwada’s first senior position was Director of Database Systems & Infrastructure at Amazon.com, where he steered industry-leading architecture, synergized operations, and helped create pioneering availability and performance environment for high volume online commerce. Balwada received a Bachelor of Technology in Industrial Engineering from the Birla Institute of Technology in Mesra, India and will be located in SumTotal’s Bellevue, Washington office.

“I am excited to join a company that is customer-focused and committed to innovations in its field,” said Balwada. “I feel confident that my recent experience promoting the on demand model will further solidify SumTotal’s leadership in this market.”

About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ: SUMT) is 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, 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, SumTotal’s anticipated growth, strategy and plans in its On Demand business and in general. These statements represent 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; (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 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 June 30, 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.