ALLETE Properties Announces Largest Sale Ever

Apr 11, 2001, 01:00 ET from ALLETE

    DULUTH, Minn., April 11 /PRNewswire/ -- ALLETE (NYSE:   ALE) announced today
 that its subsidiary, ALLETE Properties has a firm contract to sell the Tarpon
 Point Marina and the surrounding 150 acres of development property in Cape
 Coral, Fla. to the Grosse Point Development Company for $29 million.  The
 final closing is scheduled for June.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010308/ALLETELOGO )
     "This transaction is a win-win for everyone involved," said Donnie
 Crandell, executive vice president of ALLETE and president of ALLETE
 Properties.  "The Cape Coral community will benefit by gaining a high-end
 waterfront development with commercial uses.  ALLETE will benefit as this
 transaction is a key element in executing the company's business plan for
 2001.  This is our largest sale ever and will be a significant contributor to
 net income," Crandell said.  Grosse Pointe will gain the opportunity to
 develop one of the last remaining large, waterfront parcels in southwest
 Florida."
     Grosse Pointe president Bob Hensley said, "We intend to develop Tarpon
 Point into the Crown Jewel of Cape Coral.  We are planning to create an
 upscale hotel, two restaurants, retail shopping and over 900 luxury residences
 from single family homes to twenty story water-view condominiums.  We think
 the Cape Coral community will be very pleased."  Participating with Grosse
 Pointe in the transaction are J.M. Koster of Flatbeheer (a Dutch Development
 group) and Bouwfonds Financiering Vastgoed (a Dutch financial institution).
     ALLETE Properties' real estate portfolio is a part of ALLETE's investment
 business.  ALLETE is a highly diversified services company and has interests
 in 43 states and 8 Canadian provinces including, in addition to investments,
 electric utility operations, automotive services and water and wastewater
 businesses.
     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.
 
 

SOURCE ALLETE
    DULUTH, Minn., April 11 /PRNewswire/ -- ALLETE (NYSE:   ALE) announced today
 that its subsidiary, ALLETE Properties has a firm contract to sell the Tarpon
 Point Marina and the surrounding 150 acres of development property in Cape
 Coral, Fla. to the Grosse Point Development Company for $29 million.  The
 final closing is scheduled for June.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010308/ALLETELOGO )
     "This transaction is a win-win for everyone involved," said Donnie
 Crandell, executive vice president of ALLETE and president of ALLETE
 Properties.  "The Cape Coral community will benefit by gaining a high-end
 waterfront development with commercial uses.  ALLETE will benefit as this
 transaction is a key element in executing the company's business plan for
 2001.  This is our largest sale ever and will be a significant contributor to
 net income," Crandell said.  Grosse Pointe will gain the opportunity to
 develop one of the last remaining large, waterfront parcels in southwest
 Florida."
     Grosse Pointe president Bob Hensley said, "We intend to develop Tarpon
 Point into the Crown Jewel of Cape Coral.  We are planning to create an
 upscale hotel, two restaurants, retail shopping and over 900 luxury residences
 from single family homes to twenty story water-view condominiums.  We think
 the Cape Coral community will be very pleased."  Participating with Grosse
 Pointe in the transaction are J.M. Koster of Flatbeheer (a Dutch Development
 group) and Bouwfonds Financiering Vastgoed (a Dutch financial institution).
     ALLETE Properties' real estate portfolio is a part of ALLETE's investment
 business.  ALLETE is a highly diversified services company and has interests
 in 43 states and 8 Canadian provinces including, in addition to investments,
 electric utility operations, automotive services and water and wastewater
 businesses.
     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.
 
 SOURCE  ALLETE