The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) declared a $0.20 per share cash
distribution payable on March 26, 2007 to common stock shareholders of record on March 16, 2007,
pursuant to the Gabelli Equity Trust's 10% Distribution Policy.
Under the Gabelli Equity Trust's distribution policy, the Fund pays a minimum annual distribution
of 10% of the average net asset value of the Fund. The Fund's current quarterly distribution level
for 2007 is set at $0.20 per share in each of the first three quarters of the year with an adjusting
distribution in the fourth quarter of an amount sufficient to pay 10% of the average net asset value
of the Fund, as of the last day of the four preceding calendar quarters, or to satisfy the minimum
distribution requirements of the Internal Revenue Code, whichever is greater. Each quarter, the
Board of Directors reviews the amount of any potential distribution and the income, capital gains,
or capital available.
A portion of the distribution may be treated as long-term capital gain and qualified dividend income
for individuals, each subject to the maximum Federal income tax rate, which is currently 15% in taxable
accounts for individuals. If the Fund does not generate earnings from dividends, interest, and net
realized capital gains equal to or in excess of the aggregate distributions paid by the Fund for the
year, then the amount distributed in excess of the Fund's investment income and net realized capital
gains will be deemed a non-taxable return of capital.
Long-term capital gains, qualified dividend income, ordinary income, and paid-in capital, if any, will
be allocated on a pro-rata basis to all distributions to common shareholders for the year. As of
February 26, 2007, the date of this press release, the current distribution would include approximately
2% from net investment income, 13% from net capital gains, and 85% from paid-in capital. The estimated
components of each distribution are provided to shareholders of record in a notice accompanying the
distribution and are available on our website (www.gabelli.com). The final determination of the sources
of all distributions in 2007 will be made after year-end. All shareholders with taxable accounts will
receive written notification regarding the components and tax treatment for all 2007 distributions in
early 2008 via Form 1099-DIV.
The Gabelli Equity Trust Inc. is a non-diversified, closed-end management investment company with
$2.1 billion in total assets whose primary investment objective is long-term growth of capital. The
Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a
publicly traded NYSE listed company.