ALLETE INC — Director's Dealing 2007

Feb 2, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2007-01-31

Reporting Person: SCHOBER MARK A (Sen.VP & CFO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-01-31	Common Stock	A	400.65	—	Acquired	8964.64	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-02-01	Employee Stock Option -- Right to Buy	$48.65	A	6510	Acquired	2017-02-01	Common Stock (6510)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	5149.4	Indirect

Footnotes

F1: Includes shares acquired in exempt transactions under the dividend reinvestment features of ALLETE's stock purchase and dividend reinvestment plan and ALLETE's employee stock purchase plan and is based on plan information available as of February 1, 2007.

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 1, 2007.

F3: The option vests in three equal installments: one on each of the first, second and third anniversary of the grant date.