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RYE, N.Y.--([ BUSINESS WIRE ])--The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) (the aFunda) reaffirmed its 10% distribution policy and declared a $0.20 per share cash distribution payable on June 22, 2012 to common stock shareholders of record on June 15, 2012

The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Directors. Under the Fundas 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 preceding calendar quarters during the year.

Each quarter, the Board of Directors reviews the amount of any potential distribution and the income, capital gain, or capital available. The Board of Directors will continue to monitor the Fundas distribution level, taking into consideration the Fundas net asset value and the financial market environment. The Fundas 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.

A portion of the distribution may be treated as long-term capital gain and qualified dividend income for individuals, each subject to the maximum federal income tax rate, which is currently 15% in taxable accounts for individuals. 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 Fundas earnings would be deemed a return of capital. Since this would be considered a return of a portion of a shareholderas original investment, it is generally not taxable and is treated as a reduction in the shareholderas 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 May 16, 2012, each of the distributions to common shareholders paid in 2012 would include approximately 1% from net investment income, 1% from net capital gains and 98% 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 2012 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 2012 distributions in early 2013 via Form 1099-DIV.

It should be noted that the Fundas total assets include capital from preferred stock issued in prior years. Gabelli Funds, LLC (the aInvestment Advisera) does not receive a management fee on the incremental assets attributable to the Fundas outstanding preferred stock unless the total return of the net asset value of the common stock during the year, including distributions and management fee subject to reduction, exceeds the stated dividend rate or corresponding swap rate of each particular series of preferred stock for the fiscal year.

The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment company with $170 million in total net assets whose primary investment objective is long-term growth of capital. The Investment Adviser is a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly traded NYSE listed company.