|     | For      Release: | Feb.      15, 2008 |
|----------|-------------------|--------------------|
| Contact: | Eric      Olson   |
|     | 218-723-3947      |
|     | eolson@allete.com |
| Investor | Tim      Thorp    |
| Contact: | 218-723-3953      |
|     | tthorp@allete.com |
| NEWS     |              |               |

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|                                                   |                           |                              | Quarter      Ended       | Year to    Date |
|--------------------------------------------------------|--------------------------------|-----------------------------------|--------------------------|-----------------|
|                                                   |                           |                              | 2007                     | 2006            | 2007 | 2006 |
| Operating      Revenue                                 | $212.3                         | $197.2                            | $841.7                   | $767.1          |
| Operating      Expenses                                |                           |                              |                     |            |
|                                                   | Fuel      and Purchased Power  | 85.2                              | 69.8                     | 347.6           | 281.7 |
|                                                   | Operating      and Maintenance | 80.6                              | 76.0                     | 311.9           | 296.0 |
|                                                   | Depreciation                   | 12.7                              | 12.1                     | 48.5            | 48.7 |
|                                                   |                           | Total      Operating Expenses     | 178.5                    | 157.9           | 708.0 | 626.4 |
| Operating Income from      Continuing Operations       | 33.8                           | 39.3                              | 133.7                    | 140.7           |
| Other Income      (Expense)                            |                           |                              |                     |            |
|                                                   | Interest      Expense          | (5.9)                             | (7.3)                    | (24.6)          | (27.4) |
|                                                   | Equity      Earnings in ATC    | 3.3                               | 2.0                      | 12.6            | 3.0 |
|                                                   | Other                          | 3.6                               | 4.1                      | 15.5            | 11.9 |
|                                                   |                           | Total      Other Income (Expense) | 1.0                      | (1.2)           | 3.5 |  (12.5) |
| Income from Continuing      Operations Before Minority |                           |                              |                     |            |
|                                                   | Interest and Income      Taxes | 34.8                              | 38.1                     | 137.2           | 128.2 |
| Income Tax      Expense                                | 12.3                           | 13.7                              | 47.7                     | 46.3            |
| Minority      Interest                                 | 0.3                            | 1.4                               | 1.9                      | 4.6             |
| Income from Continuing      Operations                 | 22.2                           | 23.0                              | 87.6                     | 77.3            |
| Loss from Discontinued      Operations - Net of Tax    | –                        |   (0.4)                 | –                  | (0.9)           |
| Net    Income                                          | $22.2                          | $22.6                             | $87.6                    | $76.4           |
|                                                   |                           |                              |                     |            |   |   |
| Average Shares of Common      Stock                    |                           |                              |                     |            |
|                                                   | Basic                          | 28.6                              | 27.9                     | 28.3            | 27.8 |
|                                                   | Diluted                        | 28.7                              | 28.0                     | 28.4            | 27.9 |
| Basic Earnings Per Share of      Common Stock          |                           |                              |                     |            |
|                                                   | Continuing      Operations     | $0.78                             | $0.82                    | $3.09           | $2.78 |
|                                                   | Discontinued      Operations   | –                           |    (0.01) | –         | (0.03) |
|                                                   |                           |                              | $0.78                    | $0.81           | $3.09 | $2.75 |
| Diluted Earnings Per Share of      Common Stock        |                           |                              |                     |            |
|                                                   | Continuing      Operations     | $0.77                             | $0.82                    | $3.08           | $2.77 |
|                                                   | Discontinued      Operations   | –                           | (0.01)                   | –         | (0.03) |
|                                                   |                           |                              | $0.77                    | $0.81           | $3.08 | $2.74 |
| Dividends Per Share of Common      Stock               | $0.4100                        | $0.3625                           | $1.6400                  | $1.4500         |

|                                 | Dec. 31, | Dec. 31,                            |   |                                            | Dec. 31, | Dec.  31,                           |
|--------------------------------------|----------|-------------------------------------|--------|-------------------------------------------------|----------|-------------------------------------|
|                                 | 2007     | 2006                                |   |                                            | 2007     | 2006                                |
| Assets                               |     |                                |   | Liabilities and Shareholders'      Equity       |     |                                |
| Cash      and Short-Term Investments | $46.4    |  $149.3                        |   | Current      Liabilities                        | $137.1   |  $143.5                        |
| Other      Current Assets            | 168.1    | 138.4                               |   | Long-Term      Debt                             | 410.9    |      359.8 |
| Property,      Plant and Equipment   | 1,104.5  |      921.6 |   | Other      Liabilities                          | 353.6    |      364.3 |
| Investments                          | 213.8    |      189.1 |   | Shareholders'      Equity                       | 742.6    |      665.8 |
| Other                                | 111.4    |      135.0 |   |                                            |     |                                |
| Total    Assets                      | $1,644.2 |  $1,533.4                      |   | Total Liabilities and      Shareholders' Equity | $1,644.2 |  $1,533.4                      |

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|                            |                                     |                                     |        |                            | Quarter      Ended                            | Year to    Date                                                                 |
|---------------------------------|------------------------------------------|------------------------------------------|-------------|---------------------------------|-----------------------------------------------|---------------------------------------------------------------------------------|
|                            |                                     |                                     |        |                            | December    31,                               | December    31,                                                                 |
| ALLETE,    Inc.                 |                                     | 2007                                     | 2006        | 2007                            | 2006                                          |
| Income      (Loss)              |                                     |                                     |        |                            |                                          |
| Millions                        |                                     |                                     |        |                            |                                          |                                                                            |   |
|                            | Regulated      Utility                   | $17.0                                    | $13.3       | $54.9                           | $46.8                                         |
|                            | Nonregulated      Energy Operations      | 0.1                                      | 0.8         | 3.5                             | 3.7                                           |
|                            | ATC                                      |                                     |        | 1.9                             | 1.3                                           | 7.5                                                                             | 1.9 |
|                            | Real      Estate                         |                                     | 2.5         | 7.1                             | 17.7                                          | 22.8                                                                            |
|                            | Other                                    |                                     |        | 0.7                             | 0.5                                           | 4.0                                                                             | 2.1 |
|                            | Income      from Continuing Operations   | 22.2                                     | 23.0        | 87.6                            | 77.3                                          |
|                            | Loss      from Discontinued Operations   | –                                  | (0.4)       | –                         | (0.9)                                         |
|                            | Net      Income                          |                                     | $22.2       | $22.6                           | $87.6                                         | $76.4                                                                           |
| Diluted Earnings Per      Share |                                     |                                     |        |                            |
|                            | Continuing      Operations               | $0.77                                    | $0.82       | $3.08                           | $2.77                                         |
|                            | Discontinued      Operations             | –                                  | (0.01)      | –                         | (0.03)                                        |
|                            |                                     |                                     |        |                            | $0.77                                         | $0.81                                                                           | $3.08 | $2.74 |
|                            |                                     |                                     |        |                            |                                          |                                                                            |   |   |
| Statistical      Data           |                                     |                                     |        |                            |                                          |
| Corporate                       |                                     |                                     |        |                            |                                          |                                                                            |
|                            | Common      Stock                        |                                     |        |                            |                                          |
|                            |                                     | High                                     |        | $46.48                          | $47.84                                        | $51.30                                                                          | $49.30 |
|                            |                                     | Low                                      |        | $38.17                          | $42.55                                        | $38.17                                                                          | $42.55 |
|                            |                                     | Close                                    |        | $39.58                          | $46.54                                        | $39.58                                                                          | $46.54 |
|                            | Book      Value                          |                                     | $24.11      | $21.90                          | $24.11                                        | $21.90                                                                          |
|                            |                                     |                                     |        |                            |                                          |                                                                            |   |   |
| Kilowatthours      Sold         |                                     |                                     |        |                            |
| Millions                        |                                     |                                     |        |                            |                                          |                                                                            |   |
|                            | Regulated      Utility                   |                                     |        |                            |                                          |
|                            |                                     | Retail      and Municipals               |        |                            |                                          |                                                                            |
|                            |                                     |                                     | Residential | 309.0                           | 300.3                                         | 1,141.1                                                                         | 1,100.4 |
|                            |                                     |                                     | Commercial  | 339.5                           | 329.3                                         | 1,373.1                                                                         | 1,335.2 |
|                            |                                     |                                     | Municipals  | 256.2                           | 226.5                                         | 1,007.5                                                                         | 910.5 |
|                            |                                     |                                     | Industrial  | 1,838.3                         | 1,776.5                                       | 7,053.5                                                                         | 7,205.6 |
|                            |                                     |                                     | Other       | 22.0                            | 19.3                                          | 84.8                                                                            | 78.7 |
|                            |                                     |                                     |        | Total      Retail and Municipal | 2,756.0                                       | 2,651.9                                                                         | 10,660.0 | 10,630.4 |
|                            |                                     | Other      Power Suppliers               | 548.5       | 548.0                           | 2,157.3                                       | 2,152.9                                                                         |
|                            |                                     |                                     |        | Total      Regulated Utility    | 3,313.5                                       | 3,199.9                                                                         | 12,817.3 | 12,783.3 |
|                            | Nonregulated      Energy Operations      | 64.2                                     | 59.1        | 248.4                           | 240.4                                         |
|                            |                                     |                                     |        | Total      Kilowatthours Sold   | 3,377.7                                       | 3,259.0                                                                         | 13,065.7 | 13,023.7 |
|                            |                                     |                                     |        |                            |                                          |                                                                            |   |   |
| Real    Estate                  |                                     |                                     |        |                            |                                          |                                                                            |
|                            | Town      Center Development Project     |                                     |        |                            |                                          |
|                            |                                     | Non-residential      Square Footage Sold | 65,583      | 36,976                          | 540,059                                       | 401,971                                                                         |
|                            |                                     | Residential      Units                   | –     | 231                             |        130 |        773                                   |
|                            |                                     |                                     |        |                            |                                          |                                                                            |   |   |
|                            | Palm      Coast Park Development Project |                                     |        |                            |                                          |
|                            |                                     | Non-residential      Square Footage Sold | –     | –                         |   40,000                            |             – |
|                            |                                     | Residential      Units                   | 200         | –                         |        606 |        200                                   |
|                            | Other      Land                          |                                     |        |                            |                                          |                                                                            |
|                            |                                     | Acres      Sold                          | 33          | 24                              |        483 |        732                                   |

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