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. The Board of Directors shares the Investment Adviser's view that the issuance of the preferred stock is designed to benefit the common shareholders. The Fund expects that following investment of the proceeds, it will be able to generate earnings in excess of the dividend rate on the preferred shares and thereby create additional value for its common shareholders.

It should be noted that the Investment Adviser will not receive a management fee on the incremental assets raised unless the total return of the Fund to common shareholders during the year exceeds the dividend rate of the preferred stock, including the costs of any interest rate swap agreement the Fund may enter into to protect against short-term interest rate increases. The Investment Adviser believes this fee arrangement is in the best interests of all shareholders.

The Gabelli Utility Trust is a closed-end, non-diversified management investment company with $96 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 Gabelli Asset Management Inc. (GBL - NYSE), which is a publicly traded NYSE listed company.