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. This is the second time such a resolution on senior securities has been passed. Last year at the 1997 Annual Meeting, a similar resolution was likewise approved with 71.0% of the shares being voted in favor of the resolution. This year, a similar vote of 70.2% of the of the shares 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 in person or by proxy 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 several shareholder lawsuits filed in 1997 which sought to rescind the outcome of the original vote in 1997 and the issuance of Preferred Stock. It is equally clear that a substantial majority of our shareholders do not share the goals and interests of the plaintiffs in the lawsuits which seek to rescind the issuance of the Preferred Stock. This favorable vote demonstrates that the plaintiffs, in pursuing their own agenda, have sought to obstruct the interests of a significant majority of the shareholders.

The overwhelming shareholder approval at the 1998 Annual Meeting, following as it did on the expanded disclosure in the proxy material, makes it apparent that continuation of the litigation can serve no reasonable purpose. It is also a clear signal for the Directors of the Trust to consider taking all appropriate action to hold the plaintiffs responsible for the economic costs of this litigation.

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