THE GABELLI EQUITY TRUST ANNOUNCES TERMS OF THE SPIN-OFF
OF THE GABELLI UTILITY TRUST
FOR IMMEDIATE RELEASE
Rye, NY
May 24, 1999
NYSE - GAB
For information:
Marc Diagonale
(914) 921-5071

On May 17, 1999, shareholders of The Gabelli Equity Trust Inc. (GAB), at its 1999 Annual Meeting, overwhelmingly approved the spin-off of the Gabelli Utility Trust.

The Board of Directors has authorized the distribution of the Utility Trust shares to GAB shareholders at a ratio of one share of the Utility Trust for every ten shares of GAB owned. The Utility Trust's initial net asset value is anticipated to be $7.50 per share. The distribution will be made on July 9, 1999 to Equity Trust shareholders of record on July 1, 1999.

The Utility Trust will primarily focus on utility companies involved in the distribution of electricity, gas and water. The Utility Trust will be listed on the New York Stock Exchange (NYSE) under the symbol "GUT" and will pay a monthly dividend.

Shares of the Utility Trust will trade on the NYSE on a "when-issued" basis from June 29, 1999 through July 9, 1999 and will trade on a "regular way" basis beginning on July 12, 1999. Shares of GAB will trade with "due bills" from June 29, 1999 through July 9, 1999, after which shares of GAB will trade "ex-distribution".

The Gabelli Equity Trust Inc. is a closed-end, non-diversified management investment company, with $1.5 billion in assets, whose primary objective is long-term growth of capital.