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 were issued on June 20, 2001 at $25.00 per share and pay distributions quarterly. 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 20, 2006. The Fund redeemed 25% (1,650,000 Shares) of its then outstanding Preferred Shares on June 26, 2006 and has announced in a separate notice that it will redeem the remaining outstanding Preferred Shares at a later date.

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. Long-term capital gains, qualified dividend income, and ordinary income, if any, will be allocated on a pro-rata basis to all distributions for the year. As of November 16, 2006, the date of this press release, each of the distributions paid in 2006 would include approximately 26% from net investment income and 74% from net capital gains. 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 2006 will be made after year-end. All shareholders with taxable accounts will receive written notification regarding the components and tax treatment for all 2006 distributions in early 2007 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.