|     | For      Release: | February      13, 2009 |
|----------|-------------------|------------------------|
| Contact: | Tim      Thorp    |
|     | 218-723-3953      |
|     | tthorp@allete.com |
|     |              |
|     |              |
|     |              |
| NEWS     |              |                   |

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|                                                   |                           |                              | Quarter      Ended | Year      to Date |
|--------------------------------------------------------|--------------------------------|-----------------------------------|--------------------|-------------------|
|                                                   |                           |                              | 2008               | 2007              | 2008 | 2007 |
| Operating      Revenue                                 | $196.1                         | $212.3                            | $801.0             | $841.7            |
| Operating      Expenses                                |                           |                              |               |              |
|                                                   | Fuel      and Purchased Power  | 63.3                              | 85.2               | 305.6             | 347.6 |
|                                                   | Operating      and Maintenance | 76.6                              | 81.0               | 318.1             | 313.9 |
|                                                   | Depreciation                   | 16.4                              | 12.7               | 55.5              | 48.5 |
|                                                   |                           | Total      Operating Expenses     | 156.3              | 178.9             | 679.2 | 710.0 |
| Operating      Income from Continuing Operations       | 39.8                           | 33.4                              | 121.8              | 131.7             |
| Other      Income (Expense)                            |                           |                              |               |              |
|                                                   | Interest      Expense          | (6.8)                             | (5.5)              | (26.3)            | (22.6) |
|                                                   | Equity      Earnings in ATC    | 4.1                               | 3.3                | 15.3              | 12.6 |
|                                                   | Other                          | 1.7                               | 3.6                | 15.6              | 15.5 |
|                                                   |                           | Total      Other Income (Expense) | (1.0)              | 1.4               | 4.6 | 5.5 |
| Income      from Continuing Operations Before Minority |                           |                              |               |              |
|                                                   | Interest      and Income Taxes | 38.8                              | 34.8               | 126.4             | 137.2 |
| Income      Tax Expense                                | 15.1                           | 12.3                              | 43.4               | 47.7              |
| Minority      Interest                                 | 0.2                            | 0.3                               | 0.5                | 1.9               |
| Net      Income                                        | $23.5                          | $22.2                             | $82.5              | $87.6             |
|                                                   |                           |                              |               |              |   |   |
| Average      Shares of Common Stock                    |                           |                              |               |              |
|                                                   | Basic                          | 30.1                              | 28.6               | 29.2              | 28.3 |
|                                                   | Diluted                        | 30.2                              | 28.7               | 29.3              | 28.4 |
|                                                   |                           |                              |               |              |   |
| Basic      Earnings Per Share of Common Stock          | $0.78                          | $0.78                             | $2.82              | $3.09             |
|                                                   |                           |                              |               |              |
| Diluted      Earnings Per Share of Common Stock        | $0.78                          | $0.77                             | $2.82              | $3.08             |
|                                                   |                           |                              |               |              |
| Dividends      Per Share of Common Stock               | $0.43                          | $0.41                             | $1.72              | $1.64             |

|                                 | Dec.      31, | Dec.      31, |   |                                            | Dec.      31, | Dec.      31, |
|--------------------------------------|---------------|---------------|--------|-------------------------------------------------|---------------|---------------|
|                                 | 2008          | 2007          |   |                                            | 2008          | 2007          |
| Assets                               |          |          |   | Liabilities      and Shareholders' Equity       |          |          |
| Cash      and Short-Term Investments | $102.0        | $46.4         |   | Current      Liabilities                        | $150.7        | $137.1        |
| Other      Current Assets            | 150.3         | 168.1         |   | Long-Term      Debt                             | 588.3         | 410.9         |
| Property,      Plant and Equipment   | 1,387.3       | 1,104.5       |   | Other      Liabilities                          | 568.7         | 353.6         |
| Investment      in ATC               | 76.9          | 65.7          |   | Shareholders'      Equity                       | 827.1         | 742.6         |
| Investments                          | 136.9         | 148.1         |   |                                            |          |          |
| Other                                | 281.4         | 111.4         |   |                                            |          |          |
| Total      Assets                    | $2,134.8      | $1,644.2      |   | Total      Liabilities and Shareholders' Equity | $2,134.8      | $1,644.2      |

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|                            |                       |   |   |              | Quarter      Ended | Year      to Date |
|---------------------------------|----------------------------|--------|--------|-------------------|--------------------|-------------------|
|                            |                       |   |   | December      31, | December      31,  |
| ALLETE,      Inc.               |                       | 2008   | 2007   | 2008              | 2007               |
| Income      (Loss)              |                       |   |   |              |               |
| Millions                        |                       |   |   |              |               |              |   |
|                            | Regulated      Operations  | $21.4  | $18.9  | $67.9             | $62.4              |
|                            | Investments      and Other | 2.1    | 3.3    | 14.6              | 25.2               |
|                            | Net      Income            |   | $23.5  | $22.2             | $82.5              | $87.6             |
| Diluted      Earnings Per Share | $0.78                      | $0.77  | $2.82  | $3.08             |

| Statistical      Data |              |   |   |   |   |
|-----------------------|-------------------|--------|--------|--------|--------|
| Corporate             |              |   |   |   |   |   |
|                  | Common      Stock |   |   |   |   |
|                  |              | High   |   | $44.63 | $46.48 | $49.00 | $51.30 |
|                  |              | Low    |   | $28.28 | $38.17 | $28.28 | $38.17 |
|                  |              | Close  |   | $32.27 | $39.58 | $32.27 | $39.58 |
|                  | Book      Value   |   | $25.37 | $24.11 | $25.37 | $24.11 |

| Kilowatt-hours      Sold |                                     |                                     |        |                            |
|--------------------------|------------------------------------------|------------------------------------------|-------------|---------------------------------|
| Millions                 |                                     |                                     |        |                            |   |   |   |
|                     | Regulated      Utility                   |                                     |        |                            |   |
|                     |                                     | Retail      and Municipals               |        |                            |   |   |
|                     |                                     |                                     | Residential | 318.2                           | 309.0 | 1,172.1 | 1,141.1 |
|                     |                                     |                                     | Commercial  | 343.9                           | 339.5 | 1,371.6 | 1,373.1 |
|                     |                                     |                                     | Municipals  | 259.1                           | 256.2 | 1,001.6 | 1,007.5 |
|                     |                                     |                                     | Industrial  | 1,725.7                         | 1,838.3 | 7,191.9 | 7,053.5 |
|                     |                                     |                                     | Other       | 20.9                            | 22.0 | 82.9 | 84.8 |
|                     |                                     |                                     |        | Total      Retail and Municipal | 2,667.8 | 2,765.0 | 10,820.1 | 10,660.0 |
|                     |                                     | Other      Power Suppliers               | 556.3       | 548.5                           | 1,800.3 | 2,157.3 |
|                     |                                     |                                     |        | Total      Regulated Utility    | 3,224.1 | 3,313.5 | 12,620.4 | 12,817.3 |
|                     | Non-regulated      Energy Operations     | 48.1                                     | 64.2        | 217.0                           | 248.4 |
|                     |                                     |                                     |        | Total      Kilowatt-hours Sold  | 3,272.2 | 3,377.7 | 12,837.4 | 13,065.7 |
|                     |                                     |                                     |        |                            |   |   |   |   |
| Real      Estate         |                                     |                                     |        |                            |   |   |
|                     | Town      Center Development Project     |                                     |        |                            |   |
|                     |                                     | Non-residential      Square Footage Sold | –     | 65,583                          | – | 540,059 |
|                     |                                     | Residential      Units                   | –     | –                         | – |        130 |
|                     |                                     |                                     |        |                            |   |   |   |   |
|                     | Palm      Coast Park Development Project |                                     |        |                            |   |
|                     |                                     | Non-residential      Square Footage Sold | –     | –                         | – |   40,000 |
|                     |                                     | Residential      Units                   | –     | 200                             | – |        606 |
|                     |                                     |                                     |        |                            |   |   |   |   |
|                     | Other      Land                          |                                     |        |                            |   |   |
|                     |                                     | Acres      Sold                          | 167         | 33                              |        219 |        483 |

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