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The Gabelli Utility Trust (the "Trust") announced initial terms of its Rights Offering that was
originally announced on May 23, 2003. The Trust has filed a registration statement with the
Securities and Exchange Commission. The record date for the Rights Offering will be August 20, 2003.
Pursuant to the Offer, the Trust will distribute to shareholders of record one transferable Right
for each share of its common stock held on the record date.
Three Rights will enable a shareholder to purchase one additional share of stock at $7.00 per share
(the "Subscription Price"), without brokerage commissions. Rights may be exercised at any time
during the subscription period. The Rights will be transferable, with the subscription period
commencing on August 20, 2003 (the record date) and terminating 34 days later on September 23, 2003
(the expiration date), unless extended up to ten business days thereafter. Shareholders of record
who exercise their primary subscription Rights will be eligible for an over-subscription privilege
entitling these shareholders to subscribe, subject to certain limitations and a pro-rata allotment,
for any additional shares not purchased pursuant to the primary subscription. In addition, under
certain circumstances, the Trust may issue additional shares of common stock to satisfy
over-subscription requests by shareholders of record in excess of the shares available for the
over-subscription privilege.
It is expected that the Rights will trade regular way on the New York Stock Exchange beginning
August 22, 2003 at which time shareholders may sell their Rights at the then current market value.
It is expected that the Utility Trust common shares will trade "Ex-Rights" on August 18, 2003.
Subscription certificates evidencing the Rights and a copy of the Prospectus for this offering will
be mailed to record date shareholders beginning August 22, 2003. The Rights Offering will be made
only by means of this Prospectus.
The commencement and expiration dates of the Offering are subject to effectiveness of the Trust's
registration statement, which is expected on August 13, 2003.
The Gabelli Utility Trust is a closed-end, non-diversified management investment company with
$148 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.
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