The 1998 Annual Shareholder Meeting results are in. At the meeting, you - our shareholders - overwhelmingly re-affirmed a prior resolution allowing the Board to issue senior securities, which cleared the way to proceed with the issuance of cumulative preferred stock.

This is the second time such a resolution on senior securities has been passed. At the 1997 Annual Meeting a similar resolution was likewise approved with 76% of the shares being voted in favor of the resolution. This year, an even greater shareholder approval was obtained as 84% of the shareholders voted in favor of the resolution. Our semi-annual report will have full details of the voting results.

We would like to take this opportunity to extend our appreciation to all the shareholders who participated in this Annual Meeting and to all the full service brokers who communicated the merits of preferred stock to our shareholders and their clients.

The proxy material for the 1998 meeting discussed a shareholder lawsuit, which sought to block the Equity Trust from issuing Preferred Stock. There can be no doubt now that a substantial majority of our shareholders agree with the Board of Directors' assessment that the issuance of preferred stock by the Equity Trust was desirable.

The overwhelming shareholder approval at the 1998 Annual Meeting, following as it did on the expanded disclosure in the proxy material, has rendered this lawsuit moot. It is also a clear signal for the Directors of the Trust to consider recovery of expenses from the plaintiff for acting in, what we regard, as a reckless manner.

Once again, we thank you for your participation in the Annual Meeting and thank you for the confidence you have placed in The Gabelli Equity Trust.

Sincerely,

Mario J. Gabelli