ALLETE Properties Owns Significant Acreage in Fastest Growing U.S. County

DULUTH, Minn.--April 14, 2005--ALLETE's real estate business, Florida-based ALLETE Properties, Inc., owns approximately 15,000 acres of real estate located in and around the nation's fastest growing county, according to new population figures released today by the U.S. Census Bureau. The bureau report said that Flagler County, Florida was the nation's fastest growing county between July 1, 2003 and July 1, 2004, experiencing a 10.1 percent population increase. ALLETE has had a real estate presence in Florida since 1991.

"We're excited, but frankly not surprised by this news," said ALLETE President and CEO Don Shippar. "We have three major developments planned within our northeast Florida real estate holdings, and our projects are designed to help accommodate this growth."

Flagler County is located between Daytona Beach and Jacksonville along the Atlantic coast. Among the projects ALLETE Properties is currently undertaking in Flagler County is Town Center at Palm Coast, a 1,550 acre urban center that will feature a neo-traditional downtown, complete with residential units, commercial and office space, and a new town hall. Site preparation at Town Center at Palm Coast began last month.

More information regarding Town Center at Palm Coast can be found at: www.towncenterpalmcoast.com.

More details regarding the census report can by found at:

http://www.census.gov/Press-Release/www/releases/archives/ population/004654.html . (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE provides energy services in the upper Midwest and has significant real estate holdings in Florida. More information about the company is available on ALLETE's Web site at www.allete.com.

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.