ALLETE INC — Director's Dealing 2005

Mar 10, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2005-03-08

Reporting Person: Holquist Laura A (President ALLETE Properties)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2005-03-08	Common Stock	M	3079	$23.79	Acquired	6045.66	Direct
2005-03-08	Common Stock	S	3079	$43.43	Disposed	2966.66	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2005-03-08	Employee Stock Option - Right to Buy	$23.79	M	3079	Disposed	2013-02-03	Common Stock (3079)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	1400.3	Indirect
Common Stock	1135	Indirect

Footnotes

F1: Includes shares acquired in exempt transactions under ALLETE's stock purchase and dividend reinvestment plan and ALLETE's employee stock purchase plan, and is based on plan information available as of March 1, 2005.

F2: Includes shares acquired in exempt transactions under ALLETE's retirement savings and stock ownership plan (RSOP) and is based on RSOP plan information available as of February 28, 2005.

F3: This option vested 50% on February 3, 2004, and 50% on February 3, 2005.