<PAGE>
                                                                      EXHIBIT 99
                                                           ALLETE 2006 Form 10-K
[ALLETE LOGO]

                                            For Release:       February 16, 2007
                                            CONTACT:           Eric Olson
                                                               218-723-3947
                                                               eolson@allete.com

                                            INVESTOR           Tim Thorp
                                            CONTACT:           218-723-3953
                                                               tthorp@allete.com
NEWS
                  ALLETE REPORTS 2006 EARNINGS INCREASE OF 23%;
                        HIGHER EARNINGS PROJECTED IN 2007

ALLETE, Inc. (NYSE: ALE) today reported 2006 earnings from continuing operations
of $2.77 per diluted share, compared with 64 cents in 2005. Excluding
transactions in 2005 not representative of ongoing operations (described below),
2006 earnings from continuing operations increased 23 percent over the adjusted
2005 diluted earnings per share of $2.26.

ALLETE in 2006 recorded net income of $76.4 million on revenue of $767.1
million, compared to 2005 income of $13.3 million and revenue of $737.4 million.
Financial results in 2005 were impacted by three one-time transactions: a $50.4
million after-tax charge for the assignment of the Kendall County power purchase
agreement and two non-recurring tax benefits totaling $6.2 million.

Real estate income in 2006 increased 30 percent to $22.8 million, while ALLETE's
energy businesses recorded $52.4 million for the year, a 10 percent increase
over 2005 excluding the Kendall County charge.

"Increased earnings contributions from both our core real estate and energy
businesses resulted in another year of strong earnings growth," said ALLETE
Chairman, President and CEO Donald J. Shippar. "ALLETE Properties' performance
was on track, with sales contracts closing on schedule. Earnings from our
American Transmission Company (ATC) investment began ramping up and energy sales
remain at high levels."

Initial returns from ALLETE's ATC investment, the absence of operating losses
from Kendall County, and increased demand from Minnesota Power's industrial
customers contributed to an earnings increase at ALLETE's energy business in
2006. At the end of 2006, ALLETE had an investment balance of $53.7 million in
ATC, representing an ownership interest of approximately seven percent.

ALLETE's higher real estate earnings included recognition of deferred profit
from past years' sales at the Town Center at Palm Coast development project, as
well as 2006 sales at both the Town Center and Palm Coast Park projects. At the
close of 2006, ALLETE Properties had about $114 million in future land sales
under contract. ALLETE Properties' third major real estate development, Ormond
Crossings, received development order approval late in 2006.

Income at ALLETE's "other" business segment rose by $5.4 million in 2006
compared to 2005 when excluding last year's tax benefits. Higher earnings on
cash and short-term investments in 2006 and the absence of impairments in the
emerging technology investment portfolio in 2006 versus 2005 contributed to the
increase.

                                    - more -

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ALLETE NEWS RELEASE                                                       PAGE 2
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"Earnings growth is a priority for our corporation," Shippar said. "We're proud
of the key milestones ALLETE achieved during the year that lay the groundwork
for future success." These achievements include:

     -  Starting construction on an aggressive air emissions control plan with
        current cost recovery
     -  Purchasing electricity from a new 50-megawatt wind facility in North
        Dakota and signing an agreement to purchase power from a second
        48-megawatt wind facility
     -  Signing a long-term 70-megawatt contract with PolyMet Mining
     -  Receiving development order approval for ALLETE Properties' Ormond
        Crossings real estate project
     -  Closing the first sales contracts at ALLETE Properties' Palm Coast Park
        development.

Shippar noted that the 13 percent dividend increase on ALLETE common stock
announced on January 26th reflects the positive outlook for the company's future
shared by the board of directors and management.

"We project that in 2007 ALLETE's earnings per share from continuing operations
will be in the range of $2.95 to $3.05," Shippar said. "Our portfolio of
valuable real estate and the growth prospects in our energy business give us
great confidence for 2007 and beyond."

ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE
provides energy services in the upper Midwest and has significant real estate
holdings in Florida. More information about the company is available on ALLETE's
Web site at www.allete.com.
            --------------

THE STATEMENTS CONTAINED IN THIS RELEASE AND STATEMENTS THAT ALLETE MAY MAKE
ORALLY IN CONNECTION WITH THIS RELEASE THAT ARE NOT HISTORICAL FACTS, ARE
FORWARD-LOOKING STATEMENTS. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
PROJECTED IN THE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS
INVOLVE RISKS AND UNCERTAINTIES AND INVESTORS ARE DIRECTED TO THE RISKS
DISCUSSED IN DOCUMENTS FILED BY ALLETE WITH THE SECURITIES AND EXCHANGE
COMMISSION.

                                       ###

            ALLETE - 30 WEST SUPERIOR STREET, DULUTH, MINNESOTA 55802
                                 WWW.ALLETE.COM
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ALLETE NEWS RELEASE                                                       PAGE 3
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<TABLE>
                                                            ALLETE, INC.
                                                  CONSOLIDATED STATEMENT OF INCOME
                                          FOR THE PERIODS ENDED DECEMBER 31, 2006 AND 2005
                                                 Millions Except Per Share Amounts
<CAPTION>
                                                                                  QUARTER ENDED                 YEAR TO DATE
                                                                               2006           2005           2006          2005
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>            <C>            <C>           <C>
OPERATING REVENUE                                                             $197.2         $192.3         $767.1        $737.4
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
     Fuel and Purchased Power                                                   69.8           71.2          281.7         273.1
     Operating and Maintenance                                                  76.0           81.7          296.0         293.5
     Kendall County Charge                                                         -              -              -          77.9
     Depreciation                                                               12.1           12.1           48.7          47.8
------------------------------------------------------------------------------------------------------------------------------------
         Total Operating Expenses                                              157.9          165.0          626.4         692.3
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME FROM CONTINUING OPERATIONS                                     39.3           27.3          140.7          45.1
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE)
     Interest Expense                                                           (7.3)          (6.3)         (27.4)        (26.4)
     Other                                                                       6.1            3.4           14.9           1.1
------------------------------------------------------------------------------------------------------------------------------------
         Total Other Expense                                                    (1.2)          (2.9)         (12.5)        (25.3)
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS
     BEFORE MINORITY INTEREST AND INCOME TAXES                                  38.1           24.4          128.2          19.8
MINORITY INTEREST                                                                1.4            0.3            4.6           2.7
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS
     BEFORE INCOME TAXES                                                        36.7           24.1          123.6          17.1
INCOME TAX EXPENSE (BENEFIT)                                                    13.7           (0.1)          46.3          (0.5)
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS                                               23.0           24.2           77.3          17.6
LOSS FROM DISCONTINUED OPERATIONS - NET OF TAX                                  (0.4)          (3.2)          (0.9)         (4.3)
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME                                                                    $ 22.6         $ 21.0         $ 76.4        $ 13.3
------------------------------------------------------------------------------------------------------------------------------------
AVERAGE SHARES OF COMMON STOCK
     Basic                                                                      27.9           27.5           27.8          27.3
     Diluted                                                                    28.0           27.6           27.9          27.4
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BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
     Continuing Operations                                                     $0.82          $0.89          $2.78         $0.65
     Discontinued Operations                                                   (0.01)         (0.12)         (0.03)        (0.16)
------------------------------------------------------------------------------------------------------------------------------------
                                                                               $0.81          $0.77          $2.75         $0.49
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DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
     Continuing Operations                                                     $0.82          $0.88          $2.77         $0.64
     Discontinued Operations                                                   (0.01)         (0.12)         (0.03)        (0.16)
------------------------------------------------------------------------------------------------------------------------------------
                                                                               $0.81          $0.76          $2.74         $0.48
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DIVIDENDS PER SHARE OF COMMON STOCK                                          $0.3625        $0.3150        $1.4500       $1.2450
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</TABLE>

<TABLE>
                       CONSOLIDATED BALANCE SHEET
            FOR THE PERIODS ENDED DECEMBER 31, 2006 AND 2005
                                 Millions

<CAPTION>
                                                  2006          2005
----------------------------------------------------------------------
<S>                                             <C>           <C>
ASSETS
Cash and Cash Equivalents                       $   44.8      $   89.6
Short-Term Investments                             104.5         116.9
Other Current Assets                               138.4         167.0
Property, Plant and Equipment                      921.6         860.4
Investments                                        189.1         117.7
Discontinued Operations                                -           2.6
Other                                              135.0          44.6
----------------------------------------------------------------------
TOTAL ASSETS                                    $1,533.4      $1,398.8
----------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities                             $  143.5      $  106.7
Long-Term Debt                                     359.8         387.8
Other Liabilities                                  364.3         288.5
Discontinued Operations                                -          13.0
Shareholders' Equity                               665.8         602.8
----------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $1,533.4      $1,398.8
----------------------------------------------------------------------
</TABLE>

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ALLETE NEWS RELEASE                                                       PAGE 4
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<TABLE>

<CAPTION>
                                                                                  QUARTER ENDED                 YEAR TO DATE
                                                                                   DECEMBER 31,                  DECEMBER 31,
ALLETE, INC.                                                                   2006           2005           2006           2005
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>            <C>            <C>            <C>
INCOME (LOSS)
Millions

   Regulated Utility <F1>                                                     $13.3          $14.4          $46.8          $45.7
   Nonregulated Energy Operations <F1><F2>                                      0.8           (1.2)           3.7          (48.5)
   ATC                                                                          1.3              -            1.9              -
   Real Estate                                                                  7.1            3.8           22.8           17.5
   Other                                                                        0.5            7.2            2.1            2.9
------------------------------------------------------------------------------------------------------------------------------------
   Income from Continuing Operations                                           23.0           24.2           77.3           17.6
   Loss from Discontinued Operations                                           (0.4)          (3.2)          (0.9)          (4.3)
------------------------------------------------------------------------------------------------------------------------------------
   Net Income                                                                 $22.6          $21.0          $76.4          $13.3
------------------------------------------------------------------------------------------------------------------------------------
DILUTED EARNINGS (LOSS) PER SHARE
   Continuing Operations <F2>                                                 $0.82          $0.88          $2.77          $0.64
   Discontinued Operations                                                    (0.01)         (0.12)         (0.03)         (0.16)
------------------------------------------------------------------------------------------------------------------------------------
                                                                              $0.81          $0.76          $2.74          $0.48
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<FN>
<F1> In 2006, financial  results for ALLETE's Taconite  Harbor Energy Center are included in the Regulated Utility segment. In 2005,
     Taconite Harbor is included in the Nonregulated Energy Operations segment.
<F2> In April 2005, ALLETE  recorded a $50.4 million, or $1.84 per  diluted share, charge  related to the  assignment of the Kendall
     County power purchase agreement.
</FN>
</TABLE>

<TABLE>
<CAPTION>
                                                                                  QUARTER ENDED                 YEAR TO DATE
                                                                                   DECEMBER 31,                  DECEMBER 31,
                                                                               2006           2005           2006           2005
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>            <C>           <C>            <C>
STATISTICAL DATA

CORPORATE
   Common Stock
       High                                                                   $47.84         $47.36         $49.30         $51.70
       Low                                                                    $42.55         $41.28         $42.55         $35.65
       Close                                                                  $46.54         $44.00         $46.54         $44.00
   Book Value                                                                 $21.90         $20.03         $21.90         $20.03

KILOWATTHOURS SOLD
Millions

   Regulated Utility
       Retail and Municipals
           Residential                                                         300.3          297.4        1,100.4        1,101.6
           Commercial                                                          329.3          339.9        1,335.2        1,326.8
           Industrial                                                        1,776.5        1,823.0        7,205.6        7,129.8
           Municipals                                                          226.5          220.0          910.5          877.3
           Other                                                                19.3           19.9           78.7           79.1
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                Total Retail and Municipals                                  2,651.9        2,700.2       10,630.4       10,514.6
       Other Power Suppliers                                                   548.0          276.7        2,152.9        1,141.6
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                Total Regulated Utility                                      3,199.9        2,976.9       12,783.3       11,656.2
   Nonregulated Energy Operations                                               59.1          361.7          240.4        1,521.3
------------------------------------------------------------------------------------------------------------------------------------
                Total Kilowatthours Sold                                     3,259.0        3,338.6       13,023.7       13,177.5
------------------------------------------------------------------------------------------------------------------------------------

REAL ESTATE

   Town Center Development Project
       Commercial Square Footage Sold                                         36,976              -        401,971        643,000
       Residential Units                                                         231              -            773              -
   Palm Coast Park Development Project
       Residential Units                                                           -              -            200              -
   Other Land
       Acres Sold                                                                 24             44            732          1,102
       Lots Sold                                                                   -              -              -              7
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</TABLE>

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ALLETE NEWS RELEASE                                                       PAGE 5
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NON-GAAP FINANCIAL MEASURES

ALLETE prepares  financial  statements in accordance with accounting  principles
generally  accepted in the United States  (GAAP).  Along with this  information,
ALLETE  discloses and discusses  certain non-GAAP  financial  information in its
quarterly earnings releases,  on investor  conference calls, and during investor
conferences and related events. Management believes that non-GAAP financial data
supplements  ALLETE's  GAAP  financial  statements by providing  investors  with
additional  information which enhances the investors'  overall  understanding of
ALLETE's  financial  performance and the  comparability of its operating results
from period to period.  The  presentation of this additional  information is not
meant to be considered in isolation or as a substitute  for ALLETE's  results of
operations prepared and presented in accordance with GAAP.

Financial  results  for  2005  were  significantly  impacted  by  the  following
transactions:

  -  A $50.4 million after tax, or $1.84 per share, charge due to the assignment
     of the  Kendall County  power  purchase agreement  to  Constellation Energy
     Commodities;
  -  A $3.7 million, or $0.13 per  share, current  tax benefit due to a positive
     resolution of income tax audit issues; and
  -  A  $2.5  million,  or  $0.09  per  share,  deferred   tax  benefit  due  to
     comprehensive tax planning initiatives.

Since these  transactions  significantly  impacted  the  financial  results from
continuing operations in 2005, ALLETE believes that for comparative purposes and
a more accurate  reflection of its ongoing  operations,  it is useful to present
diluted earnings per share from continuing operations for each applicable period
excluding the impact of these items. The table below reconciles  actual reported
diluted  earnings per share from continuing  operations to the adjusted  results
that exclude these transactions in the respective periods.

<TABLE>
<CAPTION>
                                                                                  QUARTER ENDED                 YEAR TO DATE
                                                                                   DECEMBER 31,                  DECEMBER 31,
                                                                               2006           2005           2006           2005
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>            <C>            <C>            <C>
DILUTED EARNINGS PER SHARE OF COMMON STOCK
   Continuing Operations                                                      $0.82          $0.88          $2.77          $0.64
      Add:   Kendall County Charge                                                -              -              -           1.84
      Less:  Positive Resolution of Tax Audit Issues                              -           0.13              -           0.13
             Tax Planning Initiatives                                             -           0.09              -           0.09
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                                                                              $0.82          $0.66          $2.77          $2.26
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</TABLE>

[THIS EXHIBIT HAS BEEN FURNISHED AND SHALL NOT BE DEEMED "FILED" FOR PURPOSES OF
SECTION 18  OF  THE SECURITIES  EXCHANGE  ACT OF 1934,  NOR SHALL  IT BE  DEEMED
INCORPORATED BY REFERENCE IN ANY FILING UNDER THE SECURITIES ACT OF 1933, EXCEPT
AS SHALL BE EXPRESSLY SET FORTH BY SPECIFIC REFERENCE IN SUCH FILING.]