Gabelli Equity Trust Reaffirms Its 10% Distribution Policy and Declares First Quarter Distribution of $0.14 Per Share

  Gabelli Equity Trust Reaffirms Its 10% Distribution Policy and Declares
  First Quarter Distribution of $0.14 Per Share

Business Wire

RYE, N.Y. -- February 28, 2013

The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the
“Fund”) reaffirmed its 10% distribution policy and declared a $0.14 per share
cash distribution payable on March 21, 2013 to common stock shareholders of
record on March 14, 2013.

The Fund intends to pay a quarterly distribution of an amount determined each
quarter by the Board of Directors. Under the Fund’s current distribution
policy, the Fund intends to pay a minimum annual distribution of 10% of the
average net asset value of the Fund within a calendar year or an amount
sufficient to satisfy the minimum distribution requirements of the Internal
Revenue Code, whichever is greater. The average net asset value of the Fund is
based on the average net asset values as of the last day of the four preceding
calendar quarters during the year. Pursuant to this policy, the Fund paid
total distributions of $0.56 per share in 2012.

Each quarter, the Board of Directors reviews the amount of any potential
distribution from the income, capital gain, or capital available. The Board of
Directors will continue to monitor the Fund’s distribution level, taking into
consideration the Fund’s net asset value and the financial market environment.
The Fund’s distribution policy is subject to modification by the Board of
Directors at any time. The distribution rate should not be considered the
dividend yield or total return on an investment in the Fund.

All or part of the distribution may be treated as long-term capital gain or
qualified dividend income (or a combination of both) for individuals, each
subject to the maximum federal income tax rate, which is currently 20% in
taxable accounts for individuals. In addition, for taxable years beginning on
or after January 1, 2013, certain U.S. shareholders who are individuals,
estates or trusts and whose income exceeds certain thresholds will be required
to pay a 3.8% Medicare tax on their "net investment income", which includes
dividends received from the Fund and capital gains from the sale or other
disposition of shares of the Fund.

If the Fund does not generate sufficient earnings (dividends and interest
income and realized net capital gain) equal to or in excess of the aggregate
distributions paid by the Fund in a given year, then the amount distributed in
excess of the Fund’s earnings would be deemed a return of capital. Since this
would be considered a return of a portion of a shareholder’s original
investment, it is generally not taxable and is treated as a reduction in the
shareholder’s cost basis. Under federal tax regulations, some or all of the
return of capital distributed by the Fund may be taxable as ordinary income in
certain circumstances. This may occur when the Fund has a capital loss carry
forward, net capital gains are realized in a fiscal year, and distributions
are made in excess of investment company taxable income.

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. Based on the accounting
records of the Fund as of February 13, 2013, the current distribution to
common shareholders would include approximately 8% from net capital gains and
92% from paid-in capital on a book basis. The estimated components of each
distribution are updated and 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 2013 will be made after year end and can vary from the quarterly estimates.
All shareholders with taxable accounts will receive written notification
regarding the components and tax treatment for all 2013 distributions in early
2014 via Form 1099-DIV.

The Gabelli Equity Trust Inc. is a non-diversified, closed-end management
investment company with $1.5 billion in total net assets whose primary
investment objective is long-term growth of capital. The Fund is managed by
Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is
a publicly traded NYSE listed company.

Contact:

The Gabelli Equity Trust Inc.
Molly Marion / Carter Austin
914-921-5070
 
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