SOURCE: ALPS Advisers, Inc.

January 11, 2008 09:27 ET

Liberty All-Star® Equity Fund December 2007 Monthly Update

BOSTON, MA--(Marketwire - January 11, 2008) - Below is the December 2007 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                                                             Premium /
     Performance*                    NAV     Market Price   (Discount)
     ------------                    ---     ------------    --------
        Beginning of month value    $8.24         $7.12       (13.6%)
        Distributions                   -             -
        End of month value          $8.07         $7.05       (12.6%)
        Performance for month        0.1%          1.5%
        Performance year-to-date     4.5%         (2.8%)

        * Calculated assuming rights offering was fully subscribed under
          the terms of the offering.
        For daily data visit the Fund's website at www.all-starfunds.com
        or call 1-800-241-1850.  The Fund's daily NAV is also available by
        using the symbol XUSAX.  Past performance cannot predict future
        results.
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     Net Assets at Month-End ($millions)
     ----------------------------------
        Total                           $1,442.5
        Equities                        $1,376.0
        Percent Invested in Equities        95.4%
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     Top 20 Holdings at Month-End (32.5% of equity portfolio)
     -------------------------------------------------------
        (Rank from previous month)

1  Microsoft (3)                 2.2%      11 QUALCOMM (9)            1.6%
2  Freddie Mac (1)               2.2%      12 General Electric (10)   1.5%
3  Schlumberger (2)              2.0%      13 Salesforce.com (13)     1.5%
4  Dell (11)                     1.8%      14 Johnson & Johnson (16)  1.5%
5  Wal-Mart (5)                  1.8%      15 Google (12)             1.4%
6  Fannie Mae (6)                1.8%      16 Amazon.com (17)         1.4%
7  Citigroup (4)                 1.7%      17 Teva Pharmaceutical
8  Consol Energy (7)             1.7%          Industries (18)        1.3%
9  Annaly Capital Management (8) 1.6%      18 Intel (53)              1.3%
10 Arch Coal (19)                1.6%      19 Pfizer (15)             1.3%
                                           20 Bank of America (14)    1.3%

        Holdings are subject to change
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     Sector Breakdown (% of equity portfolio) **  New Holdings
     ---------------------------------------      ------------
        Information Technology     22.1%          Archer-Daniels-Midland
        Financials                 21.1%          National City
        Health Care                14.3%          Schering-Plough
        Industrials                12.4%
        Consumer Discretionary     10.3%
        Energy                      9.4%          Holdings Liquidated
        Consumer Staples            5.4%          -------------------
        Materials                   2.3%          America Movil S.A.
        Utilities                   1.8%          Chemtura
        Telecommunication Services  0.9%          Freeport-McMoRan Copper
                                  ------           & Gold
                                  100.0%          Pulte Homes
                                                  Smithfield Foods

     ** Based on Standard & Poor's and Morgan Stanley Capital International
        Global Industry Classification Standard (GICS).
        The Liberty All-Star Equity Fund is a closed-end fund and does not
        continuously offer shares.

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