Gabelli Equity Trust Reaffirms Its 10% Distribution Policy and Raises Its First Quarter 2014 Distribution to $0.15 Per Share

  Gabelli Equity Trust Reaffirms Its 10% Distribution Policy and Raises Its
  First Quarter 2014 Distribution to $0.15 Per Share from $0.14 Per Share

Business Wire

RYE, N.Y. -- February 27, 2014

The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the
“Fund”) reaffirms its 10% distribution policy and raises the quarterly cash
distribution to $0.15 per share, from $0.14 per share, payable on March 24,
2014 to common stock shareholders of record on March 17, 2014.

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 for regulated investment companies. 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 $0.62 per share in 2013.

Each quarter, the Board of Directors reviews the amount of any potential
distribution from the income, realized 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, and there can be no guarantee that the policy
will continue. 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, 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
return of 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 14, 2014, the current distribution paid to
common shareholders in 2014 would be deemed 100% from return of 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 2014 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 2014 distributions in early 2015 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges,
and expenses of the Fund before investing. More information regarding the
Fund’s distribution policy and other information about the fund is available
by calling 800-GABELLI (800-422-3554) or visiting www.gabelli.com.

The Gabelli Equity Trust Inc. is a non-diversified, closed-end management
investment company with $1.7 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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