$(\subseteq)$: The product of closed sets $\overline{A} \times \overline{B}$ is closed. For every closed $C$ that contains $\overline{A} \times \overline{B}$, $A \times B \subseteq C$ so $\overline{A \times B} \subseteq \overline{\overline{A} \times \overline{B}} = \overline{A} \times \overline{B}$.
$(\supseteq)$: Choose any $(a,b) \in \overline{A} \times \overline{B}$. Notice that for every open neighborhood $W \subseteq X \times Y$ that contains $(a, b)$, $U \times V \subseteq W$ (by the definition of the product topology) for some open neighborhood $U$ of $a$ and some open neighborhood $V$ of $b$. By the definition of closure points, $U$ intersects $A$ at some $a'$. Similarly, define $b' \in V \cap B$. Hence, $(a', b') \in W \cap (A \times B)$.
To summarize, every open neighborhood $W \subseteq X \times Y$ that contains $(a,b)$ must intersect $A \times B$, therefore $(a,b) \in \overline{A\times B}$.
\overlineinstead of\bar:\overline{A \times B}gives $\overline{A \times B}$ – Feb 13 '13 at 15:27