ALLETE INC — Director's Dealing 2005

Feb 25, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2005-02-24

Reporting Person: SMITH NICK (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2005-02-24	Common Stock	M	483	$16.60	Acquired	4644.3	Direct
2005-02-24	Common Stock	M	483	$15.88	Acquired	5127.3	Direct
2005-02-24	Common Stock	M	500	$18.85	Acquired	5627.3	Direct
2005-02-24	Common Stock	S	1466	$39.69	Disposed	4161.3	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2005-02-24	Stock Option - Right to Buy	$16.60	M	483	Disposed	2006-01-02	Common Stock (483)	Direct
2005-02-24	Stock Option - Right to Buy	$15.88	M	483	Disposed	2007-01-02	Common Stock (483)	Direct
2005-02-24	Stock Option - Right to Buy	$18.85	M	500	Disposed	2010-01-03	Common Stock (500)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	16.67	Indirect
Common Stock	666.67	Indirect
Common Stock	990	Indirect

Footnotes

F1: This option was previously reported as covering 1,450 shares at an exercise price of $14.31 per share, but was adjusted to reflect the spin off of ALLETE's subsidiary, ADESA, Inc., and the reverse stock split on September 20, 2004.

F2: The option vested 50% on January 2, 2007 and 50% on January 2, 2008.

F3: This option was previously reported as covering 1,450 shares at an exercise price of $13.68 per share, but was adjusted to reflect the spin off of ALLETE's subsidiary, ADESA, Inc., and the reverse stock split on September 20, 2004.

F4: The option vested 50% on January 2, 2008 and 50% on January 2, 2009.

F5: This option was previously reported as covering 1,500 shares at an exercise price of $16.25 per share, but was adjusted to reflect the spin off of ALLETE's subsidiary, ADESA, Inc., and the reverse stock split on September 20, 2004.

F6: The option vested 50% on January 3, 2001 and 50% on January 3, 2002.