Australia's Tabcorp Bets on SumTotal to Strengthen Compliance, Enhance Customer Service.

MOUNTAIN VIEW, Calif. -- Sydney-based Tabcorp's Casinos Division, part of Tabcorp Holdings Limited, has bought SumTotal's TotalLMS 7.1 to educate 8,000 employees. TotalLMS is an enterprise software platform for managing talent as well as analyzing, storing and delivering learning. Tabcorp purchased the SumTotal (Nasdaq:SUMT) platform through SumTotal partner SumTotal Australia & New Zealand. With SumTotal in place, Tabcorp plans to save time, money and resources when training staff and new employees about Australian compliance issues such a responsible gaming and service of alcohol.

Tabcorp, which is one of the five largest gaming companies in the world, aims to deploy the SumTotal platform at all its casino properties over a three-year period. According to Tabcorp, the deployment is part of a comprehensive learning strategy that is the first of its kind in Australia's gaming and entertainment industry. Tabcorp will kick off the first phase of its strategy by deploying SumTotal at Star City, a Sydney-based casino property. Tabcorp plans to follow the Star City implementation with deployments at Conrad Jupiters on Australia's Gold Coast, Conrad Treasury in Brisbane and Jupiters Townsville.

The new system will provide online delivery, assessment and reporting on learning necessary to meet Tabcorp's casino regulatory obligations as well as regulations from Australia's New South Wales Casino Control Authority and, in the future, Queensland Office of Gaming Regulations.

Training delivered through TotalLMS will include courses on occupational health and safety, code of conduct, Equal Employment Opportunity, preventing workplace harassment and pre-employment training for new workers.

"We knew of SumTotal's strong track record in Australia and New Zealand, and found that, of all the solutions we looked at, SumTotal's TotalLMS was the most flexible," said Bruce Mulligan, Tabcorp's general manager for Human Resources in the Casinos Division. "It easily integrated with our back-end systems."

Mulligan added, "As a result of implementing TotalLMS, we believe our staff will be better trained on responsible gaming and service of alcohol; we feel we'll spend less time, money and resources to achieve substantially better outcomes."

"Today's announcement underscores our solution's value to employers who need a high-powered platform for meeting a host of regulatory and compliance issues," said Don Fowler, chief executive officer of SumTotal. "This news also shows that we're making excellent progress in expanding our business internationally."

Tabcorp also expects the new system will reduce the Australian-based employer's dependency on external trainers, and the resources needed to develop, deliver and update online content.

"TotalLMS allows Tabcorp casinos to develop courseware that can be shared across the enterprise," Mulligan explained. "As well as facilitating delivery of the same message for all corporate policies, this also establishes a framework for managing the casino's learning materials and the educational requirements for each and every employee."

A key to the new LMS's value is its ability to provide Tabcorp with accurate, auditable training records and certifications from a single source. This results in dramatic improvements in reporting and analysis across the division -- whether internal monthly reports or external reports to bodies such as Australia's Casino Control Authority.

"Our standards need to set the benchmark in our industry, and our reports must be clear and transparent," said Mulligan. "SumTotal's LMS reduces the risk of regulatory non-compliance by automating the certification process. It will also centrally track and report on all compliance activities."

Con J. Kittos, chief executive and chairman of SumTotal Australia & New Zealand, added, "Star City's adoption of e-learning is recognition not only of the efficacy of technology-enabled learning -- particularly in meeting regulatory obligations -- but also the value Tabcorp places on developing its employees to meet a corporate vision to be Australia's premier provider of leisure and entertainment."

About SumTotal Systems

SumTotal Systems (Nasdaq:SUMT) is the largest provider of talent, learning and business performance technologies and services. SumTotal deploys mission-critical solutions that align talent and knowledge with 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 throughout the United States, in London, Paris, Singapore, Sydney, Tokyo, Hong Kong and Hyderabad, India. 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

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 TotalLMS 7.1; (ii) the inability to fix in a timely fashion unanticipated bugs, errors or defects that materially impact the functionality or usability of SumTotal TotalLMS 7.1; (iii) the acceptance of SumTotal TotalLMS 7.1 and future product offerings; (iv) the ability to successfully implement SumTotal Systems' solutions; (v) the ability to successfully integrate SumTotal Systems' solutions with Tabcorp's back-end systems; (vi) the ability to successfully achieve efficiency gains from the implementation of SumTotal Systems' solutions; (vii) changes in Tabcorp's casino regulatory obligations as well as regulations of Australia's New South Wales Casino Control Authority and the Queensland Office of Gaming Regulations; (viii) the ability to successfully develop and manage growth internationally; (ix) significant current and expected additional competition, and the need to continue to expand product distribution and services offerings; and (x) 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 annual report for fiscal year 2005 on Form 10-K filed March 28, 2006, the quarterly report for the quarter ended March 31, 2006, filed on May 10, 2006, and Form 8-Ks. The forward-looking statements contained in this release are made as of June 15, 2006, and SumTotal Systems does not assume any obligation to update such statements to reflect events or circumstances occurring after the date of this release.