The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT) approved the continuation of
monthly distributions of $0.06 per share for July, August and September 2006.
The distribution for July 2006 will be payable on July 25, 2006 to shareholders of record
on July 17, 2006.
The distribution for August 2006 will be payable on August 25, 2006 to shareholders of record
on August 17, 2006.
The distribution for September 2006 will be payable on September 25, 2006 to shareholders of
record on September 15, 2006.
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 Trust does not generate earnings from dividends,
interest and net realized capital gains equal to or in excess of the aggregate distributions
paid by the Trust for the year, then the amount distributed in excess of the Trust'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 paid-in capital, if any,
will be allocated on a pro-rata basis to all distributions to common shareholders for the year.
As of May 17, 2006, the date of this press release, the current distribution would include
approximately 13% from net investment income, 8% from net capital gains and 79% from paid-in
capital. 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 Utility Trust has paid a distribution to shareholders every month since October 1999.
The Gabelli Utility Trust is a non-diversified, closed-end management investment company with
$263 million in total assets whose primary investment objective is to seek long-term growth
of capital and income by investing primarily in utility companies involved in the generation
and distribution of electricity, gas and water. The Trust is managed by Gabelli Funds, LLC,
a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly traded NYSE listed company.