ALLETE INC — Director's Dealing 2007

Dec 13, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2007-12-12

Reporting Person: AMBERG DEBORAH A (SrVP, Gen. Counsel & Secretary)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-12-12	Common Stock	M	993	$25.08	Acquired	2610.95	Direct
2007-12-12	Common Stock	S	993	$40.40	Disposed	1617.95	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-12-12	Employee Stock Option -- Right to Buy	$25.08	M	993	Disposed	2008-01-02	Common Stock (993)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	4195.26	Indirect

Footnotes

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

F3: This option was previously reported as covering 1,152 shares at an exercise price of $21.63, but was adjusted to reflect the reverse stock split and the spin off of ALLETE's subsidary, ADESA, Inc.on September 20, 2004.

F4: 50% was exercisable on January 2, 1999 and 50% was exercisable on January 2, 2000.