Earnings inthe first quarter of 2008 were boosted by a $3

Earnings inthe first quarter of 2008 were boosted by a $3.7 million, or 12 cents per sharegain on the sale of securities held for employee benefits. Earnings for thefirst quarter of 2009 were reduced by a $3.4 million, or 11 cents per sharecharge reflecting the 2008 portion of a rate refund recorded at Minnesota Powerin response to a Minnesota Public Utilities Commission hearing. ALLETE`s Regulated Operations earned $17.7 million in the first quarter, adecline of $2.4 million compared to the year-ago period. Higher interim retailelectric rates and higher wholesale rates were more than offset by increaseddepreciation and interest expenses, and the aforementioned refund. The Investments and Other segment was $4.3 million lower than the first quarterof 2008, mainly due to the gain on the sale of investments in the employeebenefit plans recorded last year.

In addition, earnings per share decreased by four cents compared to the firstquarter of 2008 as a result of additional common shares outstanding in 2009. “During the first quarter, we essentially mitigated the impact of lower sales toour taconite customers by remarketing their available energy to other powersuppliers,” said Chairman, President and CEO Don Shippar. “We have salesagreements in place that will offset about 85 percent of the current estimatedfinancial impact from reduced industrial sales for 2009. We will continue ourremarketing efforts and expense reduction activities with the goal of offsettingthe remaining earnings impact.” Shippar said that ALLETE expects year-end earnings to be within a range of $2.10to $2.25 on net income of $67 to $72 million, excluding the charge for the 2008portion of the rate refund.

Based in Duluth, Minn., ALLETE (NYSE: ALE) provides regulated energy services inMinnesota and Wisconsin, has an equity investment in the American TransmissionCompany, and owns BNI Coal in North Dakota and ALLETE Properties in Florida.More information about the company is available at The statements contained in this release and statements that ALLETE may makeorally in connection with this release that are not historical facts, areforward-looking statements. Actual results may differ materially from thoseprojected in the forward-looking statements. These forward-looking statementsinvolve risks and uncertainties and investors are directed to the risksdiscussed in documents filed by ALLETE with the Securities and ExchangeCommission ALLETE, Inc. 31, 2009 2008 2009 2008Assets Liabilities and Shareholders’ Equity Cash and Short-Term Investments$98.0 $102.0Current Liabilities $137.3$150.7 Other Current Assets145.9 150.3Long-Term Debt 627.1 588.3 Property, Plant and Equipment 1,435.2 1,387.3Other Liabilities363.9 389.3 Investment in ATC 79.776.9 Deferred Income Taxes & Investment Tax Credits 182.2 169.6 Investments 127.3 136.9Shareholders’ Equity 858.4 836.9 Other 282.8 281.4 Total Assets $2,168.9$2,134.8Total Liabilities and Shareholders’ Equity$2,168.9$2,134.8 Quarter EndedMarch 31, ALLETE, Inc. Daniel Dufner will join Linklaters New York Office as a Partner in U.S.Corporate PracticeNEW YORK–(Business Wire)–Leading global law firm Linklaters LLP today announced that Daniel Dufner willjoin the firm`s New York office as a partner. Dan was a partner at White & CaseLLP and his expertise in both public and private U.S M&A will bring added depthto Linklaters` U.S and global M&A practice.