ALLETE INC — Director's Dealing 2004

Sep 30, 2004

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2004-09-20

Reporting Person: Holquist Laura A (President ALLETE Properties)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	2303.65	Direct
Common Stock	1003.68	Indirect
Common Stock	1235.27	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Employee Stock Option (right to buy)	$23.79	2013-02-03	Common Stock (3079)		Direct
Employee Stock Option (right to buy)	$37.76	2014-02-02	Common Stock (3708)		Direct

Footnotes

F1: Total shown reflects the one-for-three reverse stock split effective at 12:00 noon EDT on September 20, 2004.

F2: 50% vested on February 3, 2004, and the remaining 50% will vest on February 3, 2005.

F3: The option will vest in three equal installments on February 2, 2005, February 2, 2006 and February 2, 2007.