IDC ranks SmartForce as the best eLearning company for the 2d consecutive year

REDWOOD CITY, Calif.—July 31, 2001
For the second consecutive year, International Data Corporation (IDC) has identified SmartForce (Nasdaq: SMTF) as the world’s leading eLearning company. In IDC’s recent bulletin, The Top 15 Worldwide IT Training Providers in 2000, SmartForce had the highest revenues of any eLearning company. Since successfully transforming itself into the leader in enterprise eLearning, SmartForce now counts itself among an elite group of profitable Internet companies, and is the first and only profitable, publicly-traded eLearning company.

SmartForce’s leadership can be attributed to its complete e-Learning solution, which combines leading-edge eLearning technology with the industry’s largest body of eLearning content, its ability to close multiple million-dollar contracts, its sales force which is the largest and most globally dispersed in the industry, its entrance into vertical markets through strategic alliances, and the increasing adoption of eLearning. While executing its eLearning strategy, SmartForce has continued to enhance its technology platform and e3 application architecture and has expanded its content in the areas of business and soft skills. The company also continued its international expansion with 2,500 hours of localized eLearning in eleven languages.

“SmartForce has fared well in the eLearning business because of its ability to sign large contracts, its focus on forging new alliances that bring the company into new markets, the growing adoption of its eLearning solutions and its ability to demonstrate value to its customers,” said Cushing Anderson, IDC’s program manager, Learning Services Research. “SmartForce achieved exceptional growth rate in this year and reinforced the continuing opportunities for high revenue and growth associated with this market. As SmartForce continues its growth in 2001, clients will benefit from the increasing capability of its learning infrastructure.”

Successful learning providers, according to IDC, are defined by their ability to impact customers’ business objectives, a fact well understood by SmartForce.

“At SmartForce, we believe that eLearning can fundamentally transform the way global enterprises educate their employees. eLearning can deliver real solutions to time-sensitive business problems,” said Greg Priest, chairman and CEO of SmartForce. “With just-in-time learning, SmartForce takes companies beyond where they are today to the place they need to be by helping them further and realize their organizational goals and vision. We are particularly gratified by IDC’s report because it affirms the acceptance of our approach to eLearning and reinforces SmartForce’s leadership position in the marketplace.”

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

About SmartForce
SmartForce, the world’s largest eLearning company, provides integrated enterprise eLearning solutions. SmartForce eLearning is available as a fully hosted Internet environment through an Internet rental model. With more than 2,500 major corporate customers, SmartForce eLearning solutions bring the power of the Internet to the critical training business process. SmartForce eLearning is also used by leading companies worldwide to provide the infrastructure to support their eLearning 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