The Board of Directors also reaffirmed the Gabelli Equity Trust's 10% Distribution Policy and established a quarterly distribution level of $0.16 per share for 2004, beginning with a cash distribution payable on March 25, 2004 to common stock shareholders of record on March 17, 2004.

Under the Gabelli Equity Trust's payout policy, the Fund pays out a minimum annual distribution of 10% of the average net asset value of the Fund. The Fund's current quarterly distribution level for 2003 is set at $0.14 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.

Given the Fund's current net asset value of $7.35, the Board of Directors considered the appropriate level of quarterly payments in 2004 pursuant to the 10% Distribution Policy. Subsequent quarterly distributions will be set at the $0.16 per share level in an effort to provide our common stock shareholders consistent distributions throughout the upcoming year. Each quarter, the Board of Directors reviews the amount of any potential distribution based on the income, capital gains or capital available.

A portion of the distribution may be treated as long term capital gains and qualifying dividend income for individuals, each subject to a maximum federal tax rate of 15% in taxable accounts for individuals. Long-term capital gains and ordinary income, if any, will be allocated on a pro-rata basis to all distributions for the year.

The final determination of the proportion of long-term capital gains, ordinary income and non-taxable return of capital, if any, distributed in 2003 will be made after year-end. All shareholders will receive written notification regarding the components and tax treatment for all 2003 distributions in early 2004 via Form 1099-DIV.

The Gabelli Equity Trust Inc. is a closed-end, non-diversified management investment company with $1.4 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 Gabelli Asset Management Inc. (GBL - NYSE), which is a publicly traded NYSE listed company.