ALLETE INC — Director's Dealing 2005

Jan 18, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2005-01-14

Reporting Person: STENDER BRUCE W (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2005-01-14	Common Stock	M	1250	$16.60	Acquired	8643.55	Direct
2005-01-14	Common Stock	M	1250	$15.88	Acquired	9893.55	Direct
2005-01-14	Common Stock	M	1293	$18.85	Acquired	11186.55	Direct
2005-01-14	Common Stock	F	1588	$40.91	Disposed	9598.55	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2005-01-14	Stock Option - Right to Buy	$16.60	M	1250	Disposed	2006-01-02	Common Stock (1250)	Direct
2005-01-14	Stock Option - Right to Buy	$15.88	M	1250	Disposed	2007-01-02	Common Stock (1250)	Direct
2005-01-14	Stock Option - Right to Buy	$18.85	M	1293	Disposed	2010-01-03	Common Stock (1293)	Direct

Footnotes

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

F2: 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 reverse stock split and the spin off of ALLETE's subsidiary, ADESA, Inc., on September 20, 2004.

F3: 50% vested January 2, 1997 and 50% vested January 2, 1998.

F4: This option was previously reported as covering 1,450 shares at an exercise price of $13.69 per share, but was adjusted to reflect the reverse stock split and the spin off of ALLETE's subsidiary, ADESA, Inc., on September 20, 2004.

F5: 50% vested January 2, 1998 and 50% vested January 2, 1999.

F6: 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 reverse stock split and the spin off of ALLETE's subsidiary, ADESA, Inc., on September 20, 2004.

F7: 50% vested January 3, 2001 and 50% vested January 3, 2002.