The actual amount of capital to be raised, the initial dividend rate(s) and the timing of the offering have not been determined and will be announced at a later date. The proceeds raised will be used for investment purposes. This announcement does not constitute an offering of any securities, which will be made only by means of a prospectus.

The filing of a registration statement for an offering of preferred stock provides an opportunity for the Fund to take advantage of the current, low interest rate environment. On January 7, 2003, The Gabelli Convertible and Income Securities Fund Inc. announced the redemption of the remaining 600,000 Shares of its outstanding 8.00% Cumulative Preferred Stock. The redemption date is February 11, 2003 and the redemption price is $25.25 per Preferred Share, which consists of $25.00 per Preferred Share plus accumulated and unpaid dividends through the redemption date of $0.25 per Preferred Share.

The Gabelli Convertible and Income Securities Fund Inc. is a closed-end, diversified management investment company with $112 million in total assets whose primary investment objective is to seek a high level of total return through a combination of current income and capital appreciation. 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.