IDC Identifies SmartForce as World's Largest e-Learning Company

Business Wire, June 6, 2000

Business Editors & High-Tech Writers

REDWOOD CITY, Calif.--(BUSINESS WIRE)--June 6, 2000

SmartForce (Nasdaq:SMTF), the e-Learning company, announced today that it has been ranked as the world's largest e-Learning company by International Data Corporation (IDC).

According to IDC, SmartForce accomplished this by growing at a rate in 1999 of more than twice as fast as the average rate of growth of the top ten companies on the IDC list. In fact, although the number was not reported by IDC, SmartForce's growth in its backlog of firmly contracted business from the end of 1998 to the end of 1999 exceeded the average growth of IDC's top ten companies by a factor of three.

In addition to being the largest e-Learning company in 1999, SmartForce was identified as the eighth largest IT training company in the world, up from the company's position as the tenth largest in 1998. The seven largest companies predominantly sell instructor-led training in physical classrooms. IDC's opinion was set forth in its recent Education and Training Services report: "The Top 15 World-Wide IT Training Providers."

"SmartForce clearly has a market leading position in delivering integrated e-Learning solutions. This position has resulted in SmartForce emerging as the largest e-Learning company in the world and in its rapid growth in 1999," said Ellen Julian, Director of IDC's Career and Learning Services Research. "It is for these reasons that we have identified SmartForce as a 'Company to Watch' in the year 2000."

"Our ranking in the IDC report certainly validates our e-Learning strategy and the acceptance and quality of our products," said Greg Priest, president and CEO of SmartForce. "Through SmartForce e-Learning, we are committed to delivering to the marketplace all of the components that go into developing e-Learning solutions for critical business processes -- from content to infrastructure to tools and services. We are proud that IDC, and the e-Learning market, has recognized our leadership."

As companies become more global, time and location constraints have made employing only instructor-led, classroom-based training less feasible. As a result, companies increasingly are opting for Internet-based learning to train their employees. SmartForce has led and enabled this trend by developing powerful tools that make e-Learning cost-effective, convenient and easy to use. This has enabled SmartForce to deliver e-Learning solutions for enterprises with a wide variety of business requirements, integrating web-based training, e-Learning infrastructure, collaboration activities, opportunities for application and practice, and assessment.

About SmartForce:

SmartForce, the e-Learning company, formerly CBT Systems, 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 1,300 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.

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.