SmartForce to Provide e-Learning Solution for Microsoft Direct Access Users

March 2, 2001

REDWOOD CITY, Calif. — SmartForce (Nasdaq: SMTF – news), the world’s largest e-Learning company, today announced a strategic agreement with Microsoft Corp. to provide an e-Learning solution to help Microsoft partners sell Microsoft products and solutions. The program is directed to the 20,000 plus registered users of the Microsoft Direct Access website.

The Microsoft Direct Access website provides tools and expert knowledge that empower partners to market and sell Microsoft products effectively. Previously, SmartForce provided technical training for the Microsoft Direct Access website. The successful implementation of the program prompted Microsoft to expand its agreement with SmartForce in order to offer free sales training to all registered Microsoft Direct Access users.

Under the agreement, SmartForce will use its e3 e-Learning application architecture and Microsoft Passport Services to create and deliver an e-Learning solution based on content co-developed by Microsoft and SmartForce. The SmartForce solution will help partners develop their businesses, learn to identify sales opportunities and articulate product features and business benefits to their customers.

Award-winning content, including interactive seminars and workshops, simulations and 24×7 real-time collaboration with subject matter experts, together with leading-edge instructional technology are the building blocks for the complete SmartForce e-Learning solution. With SmartForce’s e3 object-based application architecture, all of these e-Learning elements can be managed and personalized on an object level. e3 also enables the quick and easy publication of new learning objects to the platform. As a result, Microsoft will be able to update the solution continually to arm its partners with the latest Microsoft product and marketing information.

Microsoft partners will benefit from the highest quality e-Learning solution available complete with fully hosted platform, learning management capability and an array of collaborative learning events. This association validates the power and quality of SmartForce’s e-Learning solutions and gives Microsoft a powerful new tool for training its partner community.

“We’re pleased to be expanding our relationship with SmartForce,” said Rosa Garcia, general manager of Microsoft Partner Programs. “SmartForce e-Learning solutions are helping us arm our partners with the most effective tools to sell Microsoft products and solutions.”

“To maintain leadership in the Internet economy, companies must be able to deliver critical product and market knowledge rapidly throughout the extended enterprise,” said SmartForce CEO Greg Priest. “No one knows this better than Microsoft. We are pleased to be able to support Microsoft as it works to enhance the selling capability of its partners.”

About SmartForce e-Learning:

SmartForce e-Learning is a comprehensive application infrastructure to support e-Learning initiatives in enterprises globally. Encompassing the largest body of e-Learning content in the world, and a fully integrated student environment, learning management system and a range of custom content creation and publication tools, SmartForce e-Learning provides the architecture that global enterprises are using today to implement e-Learning strategies to support their critical strategic business initiatives.

About SmartForce:

SmartForce, the world’s largest e-Learning company, provides integrated enterprise e-Learning solutions. SmartForce e-Learning is available as a fully hosted Internet environment through an Internet rental model. With more than 2,500 major corporate customers, SmartForce e-Learning solutions bring the power of the Internet to the critical training business process. The SmartForce e-Learning environment is also used by leading Internet, software and other companies to provide the infrastructure to support their e-Learning initiatives. SmartForce is quoted on the NASDAQ National Market under the symbol “SMTF.” The company, which has more than 1,500 employees worldwide, has corporate headquarters at 900 Chesapeake Drive, Redwood City, Calif., 94063. Phone: 650-817-5900. Fax: 650-817-5061. Web site: www.smartforce.com.

NOTE: SmartForce, SmartForce e-Learning and the SmartForce logo are trademarks of SmartForce. All other company and product names may be trademarks of the respective companies with which they are associated.