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The Gabelli Equity Trust Inc. (NYSE - GAB), as authorized by the Board of Directors, will redeem all
(5,367,900 Shares) of its outstanding 7.25% Cumulative Preferred Stock. The redemption date is
June 17, 2003 and the redemption price is $25.4078 per Preferred Share, which consists of $25.00 per
Preferred Share (the "liquidation value") plus accrued dividends through the redemption date of
$0.4078 per Preferred Share. The Preferred Shares are callable at any time at the liquidation value
of $25.00 per share plus accrued dividends following the expiration of the five-year call protection
on June 9, 2003.
From and after the redemption date, the Preferred Shares to be redeemed will no longer be deemed
outstanding, dividends will cease to accrue and all the rights of the Preferred Shareholders with
respect to the Preferred Shares to be redeemed will cease, except the right to receive the redemption
price. Shareholders of record will be mailed a redemption notice and letter of transmittal shortly.
The redemption price will be paid only to shareholders of record who complete and sign the letter of
transmittal and submit certificates for the number of Preferred Shares being redeemed. The paying
agent for this redemption is Equiserve Trust Company, N.A.
The Board has also authorized the Fund to issue additional preferred stock in the future. The actual
amount of capital to be raised, the dividend rate and the timing of any new offering will be determined
at a later date. Any offering will be made only by means of a prospectus.
The Preferred Shares, which trade on the New York Stock Exchange under the symbol "GAB Pr", are rated
'Aaa' by Moody's Investor Services and have an annual dividend rate of $1.8125 per share. The Preferred
Shares pay distributions quarterly.
The Gabelli Equity Trust Inc. is a closed-end, non-diversified management investment company with
$1.3 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.
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