The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the "Fund") authorized
the redemption of all (4,950,000 Shares) of its outstanding 7.20% Tax Advantaged Series B
Cumulative Preferred Stock (the "Preferred Shares"). The Preferred Shares were issued on
June 20, 2001 and became callable at any time after June 20, 2006 at the liquidation preference
of $25.00 per share plus accrued dividends. The timing of this redemption will be announced
at a later date and Preferred Shareholders will be notified by mail of the terms for calling
the Preferred Shares.
The Preferred Shares, which trade on the New York Stock Exchange under the symbol "GAB Pr B",
are rated "Aaa" by Moody's Investors Service and have an annual dividend rate of $1.80 per share.
The Preferred Shares pay distributions quarterly.
The Fund redeemed 25% (1,650,000 Shares) of its outstanding 7.20% Tax Advantaged Series B Cumulative
Preferred Stock on June 26, 2006 at the redemption price of $25.00 per Preferred Share, which is
equal to the liquidation preference of the Preferred Shares. The redemption was made pro rata
from each Preferred Shareholder based on the respective number of Preferred Shares held by each
such holder on the redemption date. From and after the redemption date, the Preferred Shares
redeemed are no longer be deemed outstanding, dividends cease to accrue and all the rights of the
Preferred Shareholders with respect to the Preferred Shares redeemed cease, except the right to
receive the redemption price.
The Gabelli Equity Trust Inc. is a closed-end, non-diversified 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.