Click2learn and Docent, Now SumTotal Systems, Maintain Leadership Status in METAspectrum 2004 Learning Management System Evaluation.

Business Editors

MT. VIEW, Calif.--(BUSINESS WIRE)--March 25, 2004

Report recognizes companies' ability to execute, strong client

commitment and learning technology strength and scalability

SumTotal Systems (Nasdaq:SUMT), the new learning and business performance leader formed by the merger of industry pioneers Click2learn and Docent, today announced that both Docent and Click2learn have maintained their ranking as market leaders in the METAspectrum Evaluation of Learning Management System Platforms. This marks the third consecutive time leading information technology (IT) research and consulting firm META Group has put both companies in the "Leader" category along with four other companies in the annual analysis of learning management systems (LMS).

The new METAspectrum report, published on March 24, provides an in-depth evaluation and objective assessment of 14 learning technology providers, ranking each as a "Leader," "Challenger," or "Follower." According to the report "Vendors are leaders because of their ability to execute -- those in the leader category all enjoy strong client commitment, and we heard few, if any, complaints or concerns from users of their tools."

"The continued METAspectrum ranking of Click2learn and Docent as Leaders in its analysis is another in a long line of strong indicators that blending our two organizations has produced an even stronger market leader," said Andy Eckert, SumTotal Systems CEO. "Separately, our companies had developed technologies, customer bases and resources that made us leaders in our own right. We came together because we believe the combined power of those resources will provide unparalleled benefits to our customers, including the most comprehensive technology offering in the industry."

In its key findings, the report underscores the continued movement toward integrated technology suites to keep pace with market demand. "Consistent with our past predictions, LMS suite solutions continue expanding, with extensions to learning content management systems. They feature improved capabilities for managing, creating, and reusing a wide variety of content objects, modules for performance management, and skill/skill-gap analysis. Blended learning capability is also becoming embedded as part of most offerings, with both synchronous and asynchronous learning environments, as are knowledge management capabilities and collaborative tools such as instant messaging."

In the second half of 2004, SumTotal will deliver the SumTotal Enterprise Suite 7.0, bringing the market unparalleled breadth in applications, and unparalleled depth in business functionality. Based on the industry's most widely used LMS and LCMS applications today, the suite will include the following, distinct modules and capabilities:

-- TotalLMS(TM) - for strategic management of training, corporate

information, communication, and employee knowledge

-- TotalDashboard(TM) - for detailed analysis of

organization-wide learning data and bottom-line impact

-- TotalLCMS(TM) - for creating, managing and deploying web-based

training and simulations

-- TotalVCS(TM) -for live, virtual communication, collaboration

and learning over the Web

-- TotalPerformance(TM) -for 360-degree measurement of employee

performance, and to ensure alignment of individuals and groups

at all levels of the organization

-- TotalAccess(TM) - for comprehensive mobile access to learning,

information, and content without network connection

-- TotalInformation(TM) - for management of formal and informal

knowledge and information

-- TotalCollaboration(TM) - for collaboration and facilitation of

knowledge-sharing with subject matter experts

The METAspectrum also highlights the market need for solutions targeted at vertical industries. "LMS vendors are confronted with increasing verticalization and subsequent demand for solutions tailored to specific verticals, as well as enabling more cost-effective and efficient leverage of existing client infrastructure."

SumTotal will parlay the expertise it has gained from more than 600 implementations across virtually every industry sector, into industry-specific solution offerings, including financial services, healthcare, pharmaceutical and others, seamlessly integrated into customers' existing technology systems.

The report ends with a variety of recommendations to enterprises considering a learning technology implementation, including the importance of evaluating a vendor's long-term viability. "Vendor viability has also become a major concern, as a continuing lack of investment for large-scale initiatives pressures all existing players to locate funding sources and execute well across the board. Therefore, IT organizations should carefully consider stability as well as technology capability when they make investment decisions," the report said.

That, according to Eckert, is good news for SumTotal Systems. "As a result of our merger, we have the strongest financial position in the industry, with more than $35 million in cash and more streamlined operational efficiencies. That makes us the clear choice for companies looking for a long-term, stable vendor partnership."

Eckert also pointed out what he felt was the report's most important statement: "Aligning learning directly to business and performance management goals represents a key growth area for the short and long term across the vendor landscape.

"SumTotal Systems is all about accelerating performance and profit for our customers. We know that they are under increasing pressure to demonstrate the tie between enterprise learning and increased revenue, decreased costs and reduced cycle time," he said. "That's why our technology, our R & D teams, our services and support people all are focused on helping companies implement solutions that solve real-world business problems and produce significant bottom-line results."

About META Group

META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group's experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit metagroup.com for more details on our high-value approach.

METAspectrum Disclaimer

Copyright (C) 2004 META Group, Inc. All rights reserved. Permission to reproduce this research has been granted by META Group, Inc. Any further reproduction or redistribution of this research in any form without prior written approval is prohibited. METAspectrum is META Group's independent evaluation of a technology market, representing marketplace characteristics at a given time and are subject to change without notice. META Group's permission to reproduce this evaluation should not be deemed to be an endorsement of any company or product. META Group research is intended to be one of many information sources and decision-makers should not rely solely on the METAspectrum evaluation for making solution choices. META Group expressly disclaims all warranties, express or implied, including but not limited to fitness of this research for a particular purpose or merchantability.

About SumTotal Systems, Inc.

SumTotal Systems Inc. (Nasdaq:SUMT) is the business performance and learning technology industry's largest single provider of technologies, processes and services. Formed by the merger of industry pioneers Docent and Click2learn, the company is uniquely focused on helping organizations harness and manage mission-critical intellectual power to solve real-world business problems and produce significant bottom-line results. SumTotal has helped accelerate performance and profit for more than 600 of the world's best-known companies, including Microsoft, Cingular Wireless, Vodafone, Lucent, Accenture, Cendant, Harley-Davidson, Wyeth, Wachovia and D & B. SumTotal Systems is headquartered in Mt. View, CA, with offices throughout the US, as well as London, Paris, Heidelberg, Sydney, Tokyo and Hyderabad, India.

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Information in this press release contains forward-looking statements, including statements about future business operations, industry leadership, financial performance and viability, customer benefits, timing and features of our product offerings, acceptance of our solutions, expected innovation, and other potential benefits and synergies to be derived from the transaction and other market conditions that include risks and uncertainties. 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 SumTotal Systems does not assume any obligation to update any such forward-looking statements. These statements are not guarantees of future results 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. You are cautioned not to place undue reliance on any forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, (i) the challenges and costs of integration and restructuring and the ability to achieve anticipated synergies associated with the recent merger; (ii) an emerging and rapidly evolving market, (iii) market uncertainty with respect to the merger and acceptance of SumTotal System's product offerings by customers and partners; (iv) adverse changes in general economic or market conditions; (v) delays or reductions in information technology spending; (vi) the ability to attract and retain highly qualified employees; (vii) intense competition in the marketplace and (viii) other events and other important factors disclosed previously and from time to time SumTotal Systems' filings with the Securities and Exchange Commission, including the joint proxy statement/prospectus on Form S-4 filed under the name Hockey Merger Corporation.