ALLETE INC — Director's Dealing 2008

Jun 10, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2008-06-09

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-06-09	Common Stock	M	1819	$25.45	Acquired	3471.6	Direct
2008-06-09	Common Stock	M	2011	$18.85	Acquired	5482.6	Direct
2008-06-09	Common Stock	S	3830	$45.34	Disposed	1652.6	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-06-09	Employee Stock Option -- Right to Buy	$25.45	M	1819	Disposed	2009-01-04	Common Stock (1819)	Direct
2008-06-09	Employee Stock Option - Right to Buy	$18.85	M	2011	Disposed	2010-01-03	Common Stock (2011)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	4980.11	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 June 1, 2008.

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 June 1, 2008.

F3: This option was previously reported as covering 2,110 shares at an exercise price of $21.94 per share; the option was adjusted to reflect the spinoff of ALLETE's subsidary, ADESA, Inc., and the one-for-three reverse stock split on September 20, 2004.

F4: The option vested 50% on January 4, 2000 and 50% on January 4, 2001.

F5: This option was previously reported as covering 2,333 shares at an exercise price of $16.25 per share; the option was adjusted to reflect the spinoff of ALLETE's subsidary, ADESA, Inc., and the one-for-three reverse stock split on September 20, 2004.

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