<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>rexhibit99.txt
<DESCRIPTION>EXHIBIT 99 - ALLETE FOURTH QUARTER AND YEAR END 2003 EARNINGS
<TEXT>
<PAGE>
                                                                      EXHIBIT 99
[ALLETE LOGO]

                                            For Release:       January 30, 2004
                                            CONTACT:           Eric Olson
                                                               218-723-3947
                                                               eolson@allete.com

                                            INVESTOR           Tim Thorp
                                            CONTACT:           218-723-3953
                                                               tthorp@allete.com
NEWS

       ALLETE 2003 EARNINGS FROM CONTINUING OPERATIONS INCREASE 18 PERCENT
       -------------------------------------------------------------------

DULUTH,  Minn.-- ALLETE,  Inc. (NYSE: ALE) today reported 2003 earnings of $2.84
per share, compared with $1.68 per share in 2002, an increase of 69 percent. Net
income was $236 million in 2003 on revenue of $1.62 billion, compared with prior
year net  income of $137  million on revenue  of $1.49  billion.  Earnings  from
continuing  operations  rose 18  percent  year  over  year to $1.72  per  share,
compared with $1.46.  Earnings  from  discontinued  operations  included a $71.6
million,  or $0.86 per share,  gain related to the sale of substantially  all of
our Water Services businesses.

"ALLETE had a very successful  year,  exceeding our stated  performance  goals,"
said Dave Gartzke, ALLETE Chairman. "Our Automotive Services and Energy Services
businesses  both  surpassed  their  earnings  objectives,  and we achieved a key
strategic  objective by substantially  completing the sale of our Water Services
holdings  in  Florida,  the  proceeds  from  which  were used to repay  debt and
strengthen our balance sheet."

2003 YEAR-END RESULTS
---------------------

AUTOMOTIVE  SERVICES reported 22 percent earnings growth for the year due mainly
to increased sales, lower interest expense and improved margins.  Net income was
$115 million in 2003,  compared with $94 million for the prior year.  Automotive
Services  revenue was $922  million  versus $836 million last year, a 10 percent
increase.  ADESA sold 69,000 more used  vehicles  than in 2002, an increase of 4
percent.  The used  vehicle  conversion  rate at ADESA was 61  percent  in 2003,
compared with 59 percent in 2002. Sales of salvage vehicles at ADESA Impact rose
by 9 percent over last year. At AFC, units financed increased by about 4,000 and
bad  debt  expense  was down  reflecting  the  improved  credit  quality  of the
portfolio.

Net income at ENERGY  SERVICES was $42 million in 2003, a slight  increase  over
the prior year due mainly to sales of nonregulated  generation from the Taconite
Harbor  facility and improved power prices.  Energy  Services  revenue grew by 5
percent in the year to $660 million.  The performance at Taconite Harbor in 2003
was offset by increased  pension and benefit costs,  and the  performance of the
Kendall County facility.  The Kendall County facility operated at a loss in 2003
due to negative spark spreads (the differential between electric and natural gas
prices) in the wholesale  power  market.  This resulted in an inability to cover
the fixed capacity charge on approximately  175 megawatts.  Energy Services also
incurred costs to exit the Split Rock Energy partnership.

ALLETE's  Florida  real estate  operations  posted a 26 percent  increase in net
income over the prior year, earning $14.1 million compared to $11.2 million last
year.

Net income from discontinued  operations increased by $75 million year over year
primarily  due to the  gains  recorded  from  the  sale  of the  Water  Services
businesses.

                                     (more)
<PAGE>
ALLETE NEWS RELEASE                                                       PAGE 2
--------------------------------------------------------------------------------

Using both the proceeds from the sale of Water Services and internally generated
cash,  ALLETE  repaid  $360  million  in debt  and $75  million  in  manditorily
redeemable  preferred  securities during 2003. By year end, ALLETE significantly
strengthened its balance sheet and reduced its debt to total capital  percentage
to 36 percent  (down from 46 percent at December  31,  2002),  and  improved its
liquidity as  illustrated  by its current  ratio of 1.3 (up from 0.9 at December
31, 2002).

FOURTH QUARTER 2003 RESULTS
---------------------------

Fourth quarter  earnings from continuing  operations  doubled those of the prior
year,  bolstered by a 66 percent increase at AUTOMOTIVE  SERVICES  compared with
the fourth quarter of 2002.

ADESA sold 7 percent more  vehicles and ADESA Impact sold 9 percent more salvage
vehicles in the quarter compared with the quarter a year ago. ADESA used vehicle
auctions benefited from a significantly higher conversion rate, while same-store
salvage sales in the U.S. climbed 13 percent in the quarter.

Earnings for the quarter grew by 47 percent at ENERGY SERVICES compared with the
quarter last year (including  one-time charges incurred in the fourth quarter of
2002).  While total  electric  sales for the quarter were about the same as last
year, higher wholesale power prices helped improve 2003 earnings.

Fourth  quarter  results  were also  impacted by two large real estate sales and
reduced debt expense in 2003, and the liquidation of the securities portfolio in
2002.

2003 STRATEGIC REVIEW
---------------------

Significant strategic goals were attained during 2003 by ALLETE:

     -  Substantially completing the sale of our Water Services businesses
     -  Strengthening our balance sheet
     -  Adding three board members with automotive expertise: Thomas Cunningham,
        Dennis Green and Deborah Weinstein
     -  Adding new ADESA auction facilities in two key markets - Long Island and
        Atlanta
     -  Strengthening management at Automotive Services

In October,  2003 ALLETE  announced  its  intention to separate  its  Automotive
Services  business  into a  publicly  traded  company  to be named  ADESA,  with
completion expected by mid-2004. A conference call will be scheduled for a later
date as details are finalized.

"The changes at ALLETE  should be viewed with an eye on the future as well as on
the success of our past accomplishments," Gartzke said. "We've been committed to
long-term shareholder value creation, and this will continue as ALLETE begins an
exciting new chapter in its history."

ALLETE's  corporate  headquarters  are  located in Duluth,  Minnesota.  ALLETE's
holdings include ADESA, the second largest used vehicle auction network in North
America;  AFC,  the leading  provider  of  independent  auto  dealer  financing;
Minnesota  Power,  a low-cost  electric  utility that serves some of the largest
industrial  customers in the United States; and significant real estate holdings
in Florida.  For more information about ALLETE,  visit the company'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.

                                    ####

                         [RECYCLE LOGO] RECYCLED PAPER
          ALLETE - 30 WEST SUPERIOR STREET, DULUTH, MINNESOTA 55802
                                WWW.ALLETE.COM

<PAGE>

ALLETE NEWS RELEASE                                                       PAGE 3
--------------------------------------------------------------------------------
<TABLE>
                                                          ALLETE, INC.
                                                CONSOLIDATED STATEMENT OF INCOME
                                         FOR THE PERIODS ENDED DECEMBER 31, 2003 AND 2002
                                                Millions Except Per Share Amounts
<CAPTION>
                                                                                 QUARTER ENDED                    YEAR ENDED
                                                                              2003            2002            2003           2002
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>              <C>             <C>            <C>

OPERATING REVENUE
     Energy Services                                                        $158.0          $160.9          $  659.6       $  626.0
     Automotive Services                                                     222.3           200.1             922.3          835.8
     Investments                                                               8.6             3.3              36.9           32.5
-----------------------------------------------------------------------------------------------------------------------------------
         Total Operating Revenue                                             388.9           364.3           1,618.8        1,494.3
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
     Fuel and Purchased Power                                                 55.3            63.2             252.5          234.8
     Operations                                                              271.9           264.4           1,064.7          997.9
     Interest                                                                 16.5            16.4              66.6           70.5
-----------------------------------------------------------------------------------------------------------------------------------
         Total Operating Expenses                                            343.7           344.0           1,383.8        1,303.2
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME FROM CONTINUING OPERATIONS                                   45.2            20.3             235.0          191.1
INCOME TAX EXPENSE                                                            16.6             6.6              91.9           72.2
-----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS                                             28.6            13.7             143.1          118.9
INCOME FROM DISCONTINUED OPERATIONS - NET OF TAX                              71.5             4.4              93.3           18.3
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME                                                                  $100.1          $ 18.1          $  236.4       $  137.2
-----------------------------------------------------------------------------------------------------------------------------------
AVERAGE SHARES OF COMMON STOCK
     Basic                                                                    83.6            81.8              82.8           81.1
     Diluted                                                                  84.3            82.3              83.3           81.7
-----------------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE OF COMMON STOCK
     Basic   - Continuing Operations                                         $0.34           $0.17             $1.72          $1.47
               Discontinued Operations                                        0.86            0.05              1.13           0.22
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             $1.20           $0.22             $2.85          $1.69
-----------------------------------------------------------------------------------------------------------------------------------
     Diluted - Continuing Operations                                         $0.34           $0.17             $1.72          $1.46
               Discontinued Operations                                        0.86            0.05              1.12           0.22
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             $1.20           $0.22             $2.84          $1.68
-----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS PER SHARE OF COMMON STOCK                                        $0.2825          $0.275             $1.13          $1.10
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>

                                  ALLETE, INC.
                           CONSOLIDATED BALANCE SHEET
                FOR THE PERIODS ENDED DECEMBER 31, 2003 AND 2002
                                    Millions
<CAPTION>

                                                 2003         2002

--------------------------------------------------------------------
<S>                                            <C>          <C>
ASSETS
Current Assets                                 $  695.4     $  658.4
Property, Plant and Equipment                   1,499.0      1,364.7
Investments                                       204.6        170.9
Goodwill                                          509.3        499.8
Discontinued Operations                            87.9        346.1
Other                                             105.1        107.3


--------------------------------------------------------------------
TOTAL ASSETS                                   $3,101.3     $3,147.2
--------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Notes Payable                                  $   53.0     $   74.5
Long-Term Debt Due Within One Year                 37.5        283.7
Other Current Liabilities                         435.7        380.0
Long-Term Debt                                    747.7        696.4
Mandatorily Redeemable Preferred Securities           -         75.0
Other Liabilities                                 322.2        277.4
Discontinued Operations                            45.0        127.8
Shareholders' Equity                            1,460.2      1,232.4
--------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $3,101.3     $3,147.2
--------------------------------------------------------------------
</TABLE>

<PAGE>
ALLETE NEWS RELEASE                                                       PAGE 4
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                         QUARTER ENDED                             YEAR ENDED
                                                                          DECEMBER 31,                            DECEMBER 31,
ALLETE, INC.                                                         2003             2002                  2003             2002
-----------------------------------------------------------------------------------------------------------------------------------
NET INCOME
Millions
<S>                                                                <C>              <C>                  <C>              <C>
   Energy Services                                                  $  8.1            $ 5.5                 $ 42.4           $ 41.8
   Automotive Services                                                24.8             14.9                  114.8             94.2
   Investments and Corporate Charges                                  (4.3)            (6.7)                 (14.1)           (17.1)
-----------------------------------------------------------------------------------------------------------------------------------
   Income from Continuing Operations                                  28.6             13.7                  143.1            118.9
   Income from Discontinued Operations                                71.5              4.4                   93.3             18.3
-----------------------------------------------------------------------------------------------------------------------------------
     Net Income                                                     $100.1            $18.1                 $236.4           $137.2
-----------------------------------------------------------------------------------------------------------------------------------

DILUTED EARNINGS PER SHARE

   Continuing Operations                                             $0.34            $0.17                  $1.72            $1.46
   Discontinued Operations                                            0.86             0.05                   1.12             0.22
-----------------------------------------------------------------------------------------------------------------------------------
                                                                     $1.20            $0.22                  $2.84            $1.68
-----------------------------------------------------------------------------------------------------------------------------------

STATISTICAL DATA

CORPORATE
     Common Stock
         High                                                       $31.00           $23.80                 $31.00           $31.10
         Low                                                        $27.05           $18.65                 $18.75           $18.50
         Close                                                      $30.60           $22.68                 $30.60           $22.68

     Book Value                                                     $16.73           $14.39                 $16.73           $14.39

ENERGY SERVICES
     Millions of Kilowatthours Sold
         Regulated Utility
              Retail
                Residential                                          278.4            285.7                1,065.4          1,044.4
                Commercial                                           322.1            319.9                1,285.6          1,257.0
                Industrial                                         1,649.0          1,795.4                6,558.2          6,946.2
                Other                                                 19.9             20.9                   79.2             77.4
              Resale                                                 505.9            395.4                2,155.3          1,806.7
-----------------------------------------------------------------------------------------------------------------------------------
                                                                   2,775.3          2,817.3               11,143.7         11,131.7
         Nonregulated                                                361.7            321.3                1,462.3          1,149.2
-----------------------------------------------------------------------------------------------------------------------------------
                                                                   3,137.0          3,138.6               12,606.0         12,280.9

AUTOMOTIVE SERVICES
         Vehicles Sold
              Used                                                 419,000          393,000              1,810,000        1,741,000
              Salvage                                               48,000           44,000                191,000          175,000
-----------------------------------------------------------------------------------------------------------------------------------
                                                                   467,000          437,000              2,001,000        1,916,000

         Conversion Rate - Used Vehicles                             59.5%            55.1%                  61.0%            59.0%

         Vehicles Financed                                         238,000          231,000                950,000          946,000
</TABLE>

</TEXT>
</DOCUMENT>
