ALLETE INC — Director's Dealing 2008

Feb 4, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ALLETE INC (ALE)
CIK: 0000066756
Period of Report: 2008-02-01

Reporting Person: WELTY CLAUDIA SCOTT (Sr. VP Support & CAO)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-02-01	Employee Stock Option -- Right to Buy	$39.10	A	9191	Acquired	2018-02-01	Common Stock (9191)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	6669.62	Direct
Common Stock	6410.04	Indirect

Footnotes

F1: Includes shares acquired in exempt transactions under ALLETE's stock purchase and dividend reinvestment plan and ALLETE's employee stock purchase plan, and is based on plan information available as of January 31, 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 January 31, 2008.

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