Gabelli Asset Management Inc. (NYSE: "GBL") announced that it has agreed with Cascade Investment LLC to lower the interest rate, reduce the conversion price and extend Cascade's put option for an additional year under the $100 million convertible note previously issued to Cascade by Gabelli. Cascade purchased the convertible note in August 2001 in a private placement. The ten-year note paid interest at the rate of 6.5% for the first year and 6% beginning in August 2002, and was convertible into Gabelli Class A Common Stock at $53 per share. Gabelli and Cascade have agreed to lower the interest rate to 5% and to reduce the conversion price by $1 per share, in each case effective in August 2003. In addition, Gabelli and Cascade have agreed to extend Cascade's put option until August 2004. If this convertible note is converted, Cascade Investment LLC, the private investment firm of Microsoft Corporation Chairman Mr. William H. Gates III, would own approximately 6% of Gabelli Asset Management's aggregate common stock. Commenting on this transaction, Mr. Mario J. Gabelli, Chairman and Chief Executive Officer, said: "We are delighted by this continuing investment by Cascade in our firm." Gabelli Asset Management Inc., through its subsidiaries, manages approximately $22 billion in assets of mutual funds and closed-end funds (Gabelli Funds, LLC), partnerships (Alternative Investment Group) and private advisory accounts (GAMCO).