The Preferred Shares, which trade on the New York Stock Exchange under the symbol "GAB Pr D", are rated 'Aaa' by Moody's Investor Service and have an annual dividend rate of $1.46875 per share. The 3,000,000 Preferred Shares were issued on October 7, 2003 at $25.00 per share and will pay distributions quarterly. This initial distribution represents the accrual period from October 7, 2003 through December 26, 2003.

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 and ordinary income, 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.