|     | For      Release:  | May      2, 2008 |
|----------|--------------------|------------------|
| Contact: | Steve      Kinney  |
|     | 218-722-5642       |
|     | hkinney@allete.com |
| Investor | Tim      Thorp     |
| Contact: | 218-723-3953       |
|     | tthorp@allete.com  |
| NEWS     |               |             |

----

|                                                      |                           |                              | Quarter      Ended |
|-----------------------------------------------------------|--------------------------------|-----------------------------------|--------------------|
|                                                      |                           |                              | 2008               | 2007 |
| Operating      Revenue                                    | $213.4                         | $205.3                            |
| Operating      Expenses                                   |                           |                              |
|                                                      | Fuel      and Purchased Power  | 86.3                              | 77.7               |
|                                                      | Operating      and Maintenance | 82.4                              | 74.6               |
|                                                      | Depreciation                   | 12.7                              | 11.7               |
|                                                      |                           | Total      Operating Expenses     | 181.4              | 164.0 |
| Operating      Income                                     | 32.0                           | 41.3                              |
| Other      Income (Expense)                               |                           |                              |
|                                                      | Interest      Expense          | (6.7)                             | (6.3)              |
|                                                      | Equity      Earnings in ATC    | 3.4                               | 2.9                |
|                                                      | Other                          | 8.6                               | 4.6                |
|                                                      |                           | Total      Other Income (Expense) | 5.3                | 1.2 |
| Income      Before Minority Interest and Income Taxes     | 37.3                           | 42.5                              |
| Income      Tax Expense                                   | 13.7                           | 16.1                              |
| Minority      Interest                                    | –                        | 0.1                               |
| Net      Income                                           | $23.6                          | $26.3                             |
|                                                      |                           |                              |               |   |
| Average      Shares of Common Stock                       |                           |                              |
|                                                      | Basic                          | 28.7                              | 28.1               |
|                                                      | Diluted                        | 28.7                              | 28.1               |
| Basic      and Diluted Earnings Per Share of Common Stock | $0.82                          | $0.93                             |
|                                                      |                           |                              |               |   |
| Dividends      Per Share of Common Stock                  | $0.43                          | $0.41                             |

|                                 | Mar.      31, | Dec.      31, |                                            | Mar.      31, | Dec.      31, |
|--------------------------------------|---------------|---------------|-------------------------------------------------|---------------|---------------|
|                                 | 2008          | 2007          |                                            | 2008          | 2007          |
| Assets                               |          |          | Liabilities      and Shareholders' Equity       |          |          |
| Cash      and Short-Term Investments | $76.2         | $46.4         | Current      Liabilities                        | $133.6        | $137.1        |
| Other      Current Assets            | 149.4         | 168.1         | Long-Term      Debt                             | 470.3         | 410.9         |
| Property,      Plant and Equipment   | 1,153.1       | 1,104.5       | Other      Liabilities                          | 360.5         | 353.6         |
| Investments                          | 225.8         | 213.8         | Shareholders'      Equity                       | 751.4         | 742.6         |
| Other                                | 111.3         | 111.4         |                                            |          |          |
| Total      Assets                    | $1,715.8      | $1,644.2      | Total      Liabilities and Shareholders' Equity | $1,715.8      | $1,644.2      |

----

|                            |                                |                       |        |                            | Quarter      Ended |
|---------------------------------|-------------------------------------|----------------------------|-------------|---------------------------------|--------------------|
|                            |                                |                       |        |                            | March      31,     |
| ALLETE,      Inc.               |                                | 2008                       | 2007        |
| Income      (Loss)              |                                |                       |        |
| Millions                        |                                |                       |        |                            |               |
|                            | Regulated      Utility              | $18.1                      | $18.8       |
|                            | Nonregulated      Energy Operations | 0.2                        | 2.2         |
|                            | ATC                                 |                       |        | 2.0                             | 1.8                |
|                            | Real      Estate                    |                       | (0.5)       | 3.1                             |
|                            | Other                               |                       |        | 3.8                             | 0.4                |
|                            | Net      Income                     |                       | $23.6       | $26.3                           |
| Diluted      Earnings Per Share | $0.82                               | $0.93                      |
|                            |                                |                       |        |                            |               |   |
| Statistical      Data           |                                |                       |        |
| Corporate                       |                                |                       |        |                            |
|                            | Common      Stock                   |                       |        |
|                            |                                | High                       |        | $39.86                          | $49.69             |
|                            |                                | Low                        |        | $33.76                          | $44.93             |
|                            |                                | Close                      |        | $38.62                          | $46.62             |
|                            | Book      Value                     |                       | $24.36      | $22.54                          |
|                            |                                |                       |        |                            |               |   |
| Kilowatthours      Sold         |                                |                       |
| Millions                        |                                |                       |        |                            |               |
|                            | Regulated      Utility              |                       |        |
|                            |                                | Retail      and Municipals |        |                            |
|                            |                                |                       | Residential | 362.6                           | 341.6              |
|                            |                                |                       | Commercial  | 359.6                           | 352.2              |
|                            |                                |                       | Municipals  | 272.9                           | 266.4              |
|                            |                                |                       | Industrial  | 1,823.2                         | 1,705.4            |
|                            |                                |                       | Other       | 22.3                            | 22.2               |
|                            |                                |                       |        | Total      Retail and Municipal | 2,840.6            | 2,687.8 |
|                            |                                | Other      Power Suppliers | 404.1       | 524.0                           |
|                            |                                |                       |        | Total      Regulated Utility    | 3,244.7            | 3,211.8 |
|                            | Nonregulated      Energy Operations | 48.6                       | 63.7        |
|                            |                                |                       |        | Total      Kilowatthours Sold   | 3,293.3            | 3,275.5 |
|                            |                                |                       |        |                            |               |   |
| Real      Estate                |                                |                       |        |                            |
|                            | Other      Land                     |                       |        |                            |
|                            |                                | Acres      Sold            | 2           | 367                             |

----