Minnesota Power Awards Boswell Energy Center Retrofit Contract.

DULUTH, Minn. -- Minnesota Power, a division of ALLETE, Inc. (NYSE:ALE) has awarded a contract to design and supply a retrofit Air Quality Control System (AQCS) to Hitachi Power Systems America, Ltd., a wholly owned subsidiary of Hitachi America, Ltd. The system is expected to be installed at Minnesota Power's Boswell Energy Center - Unit 3. Financial terms were not disclosed.

Hitachi Power Systems America will provide a wet flue gas desulfurization (FGD) system for sulfur dioxide (SO2) removal and a selective catalytic reduction (SCR) system for nitrogen oxides (NOx) removal. The scope also includes all interconnecting flue gas ducting and structural support steel.

The 350 MW Boswell Unit 3, located in Cohasset, Minn., is fueled by Powder River Basin coal. The Hitachi supplied AQCS is expected to reduce SO2 by 98% and NOx emissions down to 0.05 lbs/MMBTU. Execution of this project is on a fast track basis, with the system scheduled to commence operation late in 2009.

Hitachi is working closely with Minnesota Power's engineer, Burns and McDonnell, to ensure a well coordinated design and delivery scheme for construction. Burns & McDonnell is providing the entire balance of plant design.

Commenting on the agreement, Tom Coughlin, Minnesota Power project manager said, "Minnesota Power is pleased to be partnering with an innovative company such as Hitachi. From the start we were impressed with Hitachi's integrative, multi-pollutant equipment design. From a business perspective, Hitachi was able to work with MP to meet its financial, technical and schedule requirements, which will benefit our customers."

In announcing the agreement, Henry Bartoli, President and CEO of Hitachi Power Systems America, Ltd. said, "We look forward to working with Minnesota Power in addressing this unique opportunity to combine Hitachi's SCR and WFGD technologies for a complete Air Quality Control Systems solution. We thank Minnesota Power for selecting our company to execute this important contract. We are very proud of our world wide track record in the successful design and operation of our Air Quality Control Systems and we look forward to a long term relationship with Minnesota Power."

Hitachi Power Systems America, Ltd., a wholly owned subsidiary of Hitachi America, Ltd. is a leading supplier of equipment and services for the Power Generation Market including Thermal, Nuclear, and Hydro facilities. Products include advanced Pulverized Coal Boilers, HRSG's, Turbines, Substation Equipment, Wind Generation, and Air Quality Control Systems for new plants and retrofit applications. Hitachi Power Systems America is Hitachi's Global Center of Excellence for the emissions market including Wet Flue Gas Desulfurization (WFGD) and Selective Catalytic Reduction (SCR) technology. For more information, visit http://www.hitachi.us.

Minnesota Power provides electricity in a 26,000-square-mile electric service territory located in northeastern Minnesota. Minnesota Power supplies retail electric service to 135,000 retail customers, wholesale electric service to 16 municipalities, and some the largest industrial customers in the United States. More information can be found at: www.mnpower.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.