United Kingdom’s Institute of the Motor Industry Realizes Growth in Revenue and Market Share with SumTotal Systems

May 20, 2004

MOUNTAIN VIEW, CA (May 18, 2004) – SumTotal Systems (NASDAQ: SUMT), the industry’s largest provider of learning and business performance technologies, services and processes, today announced that the Institute of the Motor Industry (IMI), the professional organization for professionals in all sectors of the UK automotive industry and the leading awarding body for motor industry certification, has achieved a 70% increase in awarding revenue and a 40% increase in market share as a result of its deployment of SumTotal technology across more than 250 Training Centers and Further Education (FE) Colleges.

The IMI awards a comprehensive portfolio of technical and non-technical qualifications, including modern apprenticeships, technical certificates and management qualifications. The IMI chose SumTotal’s comprehensive platform to help its network of approved Training Centers and FE Colleges manage the skills assessment, learning, testing and certification associated with the UK’s National/Scottish Vocational Qualifications (N/SVQs). The N/SVQs encompass more than 28 different accreditations for retail automotive industry professionals, ranging from light vehicle mechanics, to body shop specialists to auto sales and customer service personnel.

Due to declining consumer confidence in the credibility and value of N/SVQ certification and declining numbers of professionals seeking accreditation, the program had been overhauled, requiring “underpinning knowledge” testing to complement the on-the-job practical skills required to pass certification. Addressing these increased requirements was time-consuming and complex for the IMI’s Training Centers and FE Colleges, so it was essential that the IMI provide a solution that would ease the administrative burden and allow fast, secure and accurate skills assessment to a geographically dispersed client population.

Leveraging the comprehensive assessment, tracking and reporting capabilities of SumTotal’s learning management system, the IMI developed the IMI Online Assessment System to address three main issues that had traditionally challenged the value and credibility of N/SVQ testing: reliability of training materials, the availability of assessment on demand and the validity of results. As a result, the IMI was able to increase the number of approved Training Centers and FE Colleges, and to significant grow the number of candidates registering for qualifications.

Since deploying SumTotal technology three years ago, the IMI has logged:

  • A 40% increase in market share of awarding business·
  • A 70% increase in awarding qualifications revenue.
  • 250 IMI approved assessment sites using the system ·
  • 30,000 registered candidates ·
  • 65,000 tests successfully passed

The increased consistency in delivery of critical information and skills training and accurate reporting of testing results enabled by the platform also has succeeded in renewing the credibility and value of N/SVQs within the retail motor industry.

“There is no doubt that the decision we made to develop an on-line solution to meet the challenges of individual candidate testing was the right one. It provides us with added flexibility to develop new functionalities and cost-effective learning programs to expand our qualification offerings, as well as our client base,” said Allan Tyrer, IMI finance director. “The strength of our awarding body business has been built on the proven performance of the SumTotal platform. In fact, we are about to close our most successful year in our 84-year history.”

About the Institute of the Motor Industry (IMI)
The IMI is the professional body for people employed in the motor industry in the United Kingdom. It offers a comprehensive portfolio of national qualifications, both technical and non-technical and is the only awarding body totally focused on the skills requirements of the automotive sector. There are 25,000 individual IMI members from across all areas of the motor industry who are recognized for their skills and experience. IMI Membership is awarded on the basis of an individual’s qualifications, career history and motor industry experience.

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 Mountain 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 in 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.
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SumTotal Systems, Inc.
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