<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>rexhibit99.txt
<DESCRIPTION>ALLETE THIRD QUARTER 2005 EARNINGS RELEASE
<TEXT>
<PAGE>
                                                                      EXHIBIT 99
[ALLETE LOGO]

                                                For Release:   October 28, 2005
                                                CONTACT:       Eric Olson
                                                               218-723-3947
                                                               eolson@allete.com

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

NEWS

           ALLETE REPORTS THIRD QUARTER EARNINGS OF 58 CENTS PER SHARE
          FROM CONTINUING OPERATIONS; RAISES EARNINGS GUIDANCE FOR 2005

ALLETE,  Inc.  (NYSE:ALE) today reported third quarter 2005 earnings of 58 cents
per share from continuing  operations  compared to a loss of two cents per share
in the third  quarter a year ago.  Last year's  third  quarter was impacted by a
one-time  charge  of 38  cents  per  share  for  the  early  retirement  of debt
associated with the spin-off of ADESA, Inc.

Excluding that charge, ALLETE's third quarter earnings per share from continuing
operations increased 61 percent compared with the same period a year ago.

"Our industrial energy customers  continue to operate at high levels, and demand
for our Florida real estate remains strong," said Don Shippar,  ALLETE President
and CEO. "We believe these positive trends will continue."

REGULATED  UTILITY  income climbed to $10.6 million in the third quarter of 2005
from $8.2 million in the comparable period a year ago because of higher sales to
all of Minnesota Power's customer classes, including the continued strong demand
from large industrial customers.

Income from NONREGULATED  ENERGY  OPERATIONS  improved by $0.9 million from last
year's  third  quarter,  primarily  due to the  elimination  of losses  from the
Kendall  County power  purchase  agreement,  which was assigned to a third party
earlier this year.

REAL ESTATE  income  increased  to $4 million this year from $1.5 million in the
third quarter of 2004.  ALLETE Properties sales under contract at the end of the
quarter were $94.2 million, with most of these contracts scheduled to close over
the next few years. Of the sales under contract,  $64.6 million are for the Town
Center at Palm Coast development.

The $10.6 million improvement in earnings in ALLETE's "OTHER" segment was mainly
due to the  aforementioned  debt  prepayment  charge,  which was recorded in the
third quarter of 2004.

"Our financial performance through the first three quarters of 2005 has exceeded
our  original  expectations,"  Shippar  said.  ALLETE  is  increasing  its  2005
guidance,  he said,  to 60 percent  earnings  per share  growth from  continuing
operations over 2004, excluding the Kendall transaction.

ALLETE,  headquartered in Duluth,  Minn.,  provides energy services in the upper
Midwest and has significant  real estate holdings in Florida.  More  information
about the company is available 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  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.

                                      ####

           ALLETE - 30 WEST SUPERIOR STREET, DULUTH, MINNESOTA 55802
                                 WWW.ALLETE.COM

<PAGE>
ALLETE NEWS RELEASE                                                       PAGE 2
--------------------------------------------------------------------------------
<TABLE>
                                                            ALLETE, INC.
                                                  CONSOLIDATED STATEMENT OF INCOME
                                         FOR THE PERIODS ENDED SEPTEMBER 30, 2005 AND 2004
                                                 Millions Except Per Share Amounts
<CAPTION>
                                                                                  QUARTER ENDED                   YEAR TO DATE
                                                                              2005            2004            2005            2004
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>             <C>             <C>             <C>
OPERATING REVENUE                                                            $187.0          $177.6          $580.7          $572.8
------------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
     Fuel and Purchased Power                                                  66.9            71.9           206.3           218.0
     Operating and Maintenance                                                 74.5            70.1           239.2           230.9
     Kendall County Charge                                                        -               -            77.9               -
     Depreciation                                                              12.7            12.3            38.0            37.2
------------------------------------------------------------------------------------------------------------------------------------
         Total Operating Expenses                                             154.1           154.3           561.4           486.1
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME FROM CONTINUING OPERATIONS                                    32.9            23.3            19.3            86.7
------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME (EXPENSE)
     Interest Expense                                                          (6.7)           (7.5)          (20.2)          (25.7)
     Other                                                                      0.4           (18.3)           (2.3)          (21.4)
------------------------------------------------------------------------------------------------------------------------------------
         Total Other Expense                                                   (6.3)          (25.8)          (22.5)          (47.1)
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
     BEFORE MINORITY INTEREST AND INCOME TAXES                                 26.6            (2.5)           (3.2)           39.6
MINORITY INTEREST                                                               1.0             0.1             2.4             2.0
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES                   25.6            (2.6)           (5.6)           37.6
INCOME TAX EXPENSE (BENEFIT)                                                    9.8            (2.0)            0.2            14.4
------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
     BEFORE CHANGE IN ACCOUNTING PRINCIPLE                                     15.8            (0.6)           (5.8)           23.2
INCOME (LOSS) FROM DISCONTINUED OPERATIONS - NET OF TAX                        (0.6)           13.7            (1.9)           79.3
CHANGE IN ACCOUNTING PRINCIPLE - NET OF TAX                                       -               -               -            (7.8)
------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)                                                            $ 15.2          $ 13.1          $ (7.7)         $ 94.7
------------------------------------------------------------------------------------------------------------------------------------
AVERAGE SHARES OF COMMON STOCK
     Basic                                                                     27.4            28.5            27.3            28.3
     Diluted                                                                   27.5            28.6            27.3            28.5
------------------------------------------------------------------------------------------------------------------------------------
BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
     Continuing Operations                                                    $0.58          $(0.03)         $(0.21)          $0.82
     Discontinued Operations                                                  (0.02)           0.48           (0.07)           2.80
     Change in Accounting Principle                                               -               -               -           (0.28)
------------------------------------------------------------------------------------------------------------------------------------
                                                                              $0.56           $0.45          $(0.28)          $3.34
------------------------------------------------------------------------------------------------------------------------------------
DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
     Continuing Operations                                                    $0.58          $(0.02)         $(0.21)          $0.82
     Discontinued Operations                                                  (0.02)           0.47           (0.07)           2.78
     Change in Accounting Principle                                               -               -               -           (0.27)
------------------------------------------------------------------------------------------------------------------------------------
                                                                              $0.56           $0.45          $(0.28)          $3.33
------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS PER SHARE OF COMMON STOCK                                         $0.3150         $0.8475         $0.9300         $2.5425
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
                         CONSOLIDATED BALANCE SHEET
                                 Millions
<CAPTION>

                                                         SEPT. 30,     DEC. 31,
                                                           2005          2004
--------------------------------------------------------------------------------
<S>                                                      <C>           <C>
ASSETS
Cash and Cash Equivalents                                $   91.4      $   44.9
Restricted Cash                                                 -          30.3
Short-Term Investments                                       66.8         149.2
Other Current Assets                                        152.3         141.7
Property, Plant and Equipment                               886.6         883.1
Investments                                                 126.8         124.5
Discontinued Operations                                       2.8           4.9
Other                                                        46.9          52.8
--------------------------------------------------------------------------------
TOTAL ASSETS                                             $1,373.6      $1,431.4
--------------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities                                      $   94.5      $   97.8
Long-Term Debt                                              389.0         390.2
Other Liabilities                                           297.6         300.9
Discontinued Operations                                       3.9          12.0
Shareholders' Equity                                        588.6         630.5
--------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY               $1,373.6      $1,431.4
--------------------------------------------------------------------------------
</TABLE>

<PAGE>
ALLETE NEWS RELEASE                                                       PAGE 3
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                                  QUARTER ENDED                   YEAR TO DATE
                                                                                  SEPTEMBER 30,                   SEPTEMBER 30,
ALLETE, INC.                                                                  2005            2004            2005            2004
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>            <C>             <C>              <C>
NET INCOME (LOSS)
Millions
   Regulated Utility                                                          $10.6           $ 8.2           $31.3           $28.1
   Nonregulated Energy Operations <F1>                                          1.6             0.7           (47.3)            0.6
   Real Estate                                                                  4.0             1.5            13.7            14.5
   Other <F2>                                                                  (0.4)          (11.0)           (3.5)          (20.0)
------------------------------------------------------------------------------------------------------------------------------------
   Income (Loss) from Continuing Operations                                    15.8            (0.6)           (5.8)           23.2
   Income (Loss) from Discontinued Operations                                  (0.6)           13.7            (1.9)           79.3
   Change in Accounting Principle                                                 -               -               -            (7.8)
------------------------------------------------------------------------------------------------------------------------------------
   Net Income (Loss)                                                          $15.2           $13.1           $(7.7)          $94.7
------------------------------------------------------------------------------------------------------------------------------------

DILUTED EARNINGS (LOSS) PER SHARE
   Continuing Operations                                                      $0.58          $(0.02)         $(0.21)          $0.82
   Discontinued Operations                                                    (0.02)           0.47           (0.07)           2.78
   Change in Accounting Principle                                                 -               -               -           (0.27)
------------------------------------------------------------------------------------------------------------------------------------
                                                                              $0.56          $ 0.45          $(0.28)          $3.33
------------------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> In April 2005,  ALLETE  recorded a $50.4 million, or $1.84 per diluted share, charge  related to the assignment of the  Kendall
     County power purchase agreement.
<F2> In  July 2004, ALLETE  recorded a  $10.9 million,  or $0.38 per diluted share, debt  prepayment cost  as part of  its financial
     restructuring in preparation for the spin-off of ADESA, Inc.
</FN>

Note: In 2005, we  began allocating corporate  charges and  interest expense  to our  business  segments. For  comparative purposes,
      segment  information for 2004 has  been restated to  reflect the new allocation  method used in 2005 for corporate charges and
      interest expense. This restatement had no impact on consolidated net income or earnings per share.
</TABLE>

<TABLE>
<CAPTION>
                                                                                  QUARTER ENDED                   YEAR TO DATE
                                                                                  SEPTEMBER 30,                   SEPTEMBER 30,
                                                                              2005            2004            2005            2004
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>             <C>             <C>             <C>
KILOWATTHOURS SOLD
Millions

   Regulated Utility
       Retail and Municipals
           Residential                                                        254.5           233.7           804.2           772.8
           Commercial                                                         346.6           334.7           986.9           960.9
           Industrial                                                       1,782.8         1,736.9         5,306.8         5,273.7
           Municipals                                                         236.0           211.1           657.3           613.9
           Other                                                               20.7            19.9            59.2            57.9
------------------------------------------------------------------------------------------------------------------------------------
                                                                            2,640.6         2,536.3         7,814.4         7,679.2
       Other Power Suppliers                                                  261.3           260.2           864.9           645.8
------------------------------------------------------------------------------------------------------------------------------------
                                                                            2,901.9         2,796.5         8,679.3         8,325.0
   Nonregulated Energy Operations                                             405.8           349.4         1,159.6         1,198.0
------------------------------------------------------------------------------------------------------------------------------------
                                                                            3,307.7         3,145.9         9,838.9         9,523.0
------------------------------------------------------------------------------------------------------------------------------------

REAL ESTATE

   Town Center Development Project
       Commercial Square Footage Sold <F1>                                  246,000               -         643,000               -

   Other Land
       Acres Sold                                                               521              18           1,058           1,445
       Lots Sold                                                                  -               -               7             211
------------------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> For the quarter ended September 30, 2005, 27 acres were sold (70 acres for the nine months ended September 30, 2005).
</FN>
</TABLE>

[THIS EXHIBIT HAS BEEN FURNISHED AND SHALL NOT BE DEEMED "FILED" FOR PURPOSES OF
SECTION 18 OF THE SECURITIES ACT OF 1934, NOR SHALL IT BE DEEMED INCORPORATED BY
REFERENCE IN ANY FILING  UNDER THE  SECURITIES  ACT OF 1933,  EXCEPT AS SHALL BE
EXPRESSLY SET FORTH BY SPECIFIC REFERENCE IN SUCH FILING.]
</TEXT>
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