The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) declared a
$0.24 per share cash distribution payable on December 23, 2005 to common stock shareholders
of record on December 15, 2005, pursuant to the Gabelli Multimedia Trust's 5%
Distribution Policy. This distribution consists of the $0.12 per share quarterly distribution
plus a $0.12 per share additional distribution to satisfy the 5% Distribution Policy. The
total distribution from the Fund equates to $0.60 per share for 2005.
The Board of Directors also reaffirmed the continuation of the Gabelli Global Multimedia
Trust's 5% Distribution Policy and intends to maintain the quarterly distribution level of
$0.12 per share for 2006 with an adjusting distribution in the fourth quarter.
Under the Gabelli Multimedia Trust's payout policy, the Fund pays a minimum annual
distribution of 5% of the average net asset value of the Fund. The Fund pays $0.12 per share
in each of the first three quarters of the year and an adjusting distribution in the fourth
quarter of a sufficient amount to pay 5% of the average net asset value of the Fund, as of
the last day of the four preceding calendar quarters, or to satisfy the minimum distribution
requirements of the Internal Revenue Code, whichever is greater. Each quarter, the Board of
Directors reviews the amount of any potential distribution and the income, capital gain or
paid-in capital available.
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. If the Fund does not generate earnings from dividends,
interest and net realized capital gains equal to or in excess of the aggregate distributions
paid by the Fund for the year, then the amount distributed in excess of the Fund's investment
income and net realized capital gains will be deemed a non-taxable return of capital. Long-term
capital gains, qualified dividend income, ordinary income and non-taxable return of capital,
if any, will be allocated on a pro-rata basis to all distributions to common shareholders for
the year. Based on earnings to date, the distribution would include approximately 25% from
net investment income, 32% from capital gains and 43% from non-taxable return of capital.
The final determination of the source of all distributions in 2005 will be made after year-end.
All shareholders with taxable accounts will receive written notification regarding the components
and tax treatment for all 2005 distributions in early 2006 via Form 1099-DIV.
The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment
company with $215 million 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.