SOURCE: ALPS Advisers, Inc.

November 24, 2008 16:18 ET

Liberty All-Star® Equity Fund October 2008 Monthly Update

BOSTON, MA--(Marketwire - November 24, 2008) - Below is the October 2008 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                  October 2008 Monthly Update

                                                        Premium /
Performance                    NAV     Market Price    (Discount)
-----------                    -----   ------------    ----------
   Beginning of month value    $5.66      $4.51          (20.3%)
   Distributions                 -          -
   End of month value          $4.66      $3.86          (17.2%)
   Performance for month       (17.7%)   (14.4%)
   Performance year-to-date    (37.6%)   (39.9%)

   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                                   $832.3
   Equities                                $818.1
   Preferred Stocks & Convertible Bonds      $2.0

   Percent Invested                          98.5%
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Top 20 Holdings at Month-End (29.4% of portfolio)
-------------------------------------------------
        (Rank from previous month)

1  Bank of America Corp. (8)    2.5%   11 Union Pacific Corp. (32)     1.2%
2  Citigroup, Inc. (1)          2.2%   12 JPMorgan Chase & Co. (10)    1.2%
3  The Procter & Gamble Co. (4) 2.1%   13 Google, Inc., Class A (18)   1.2%
4  Wal-Mart Stores, Inc. (3)    2.0%   14 Capital One Financial
                                           Corp. (2)                   1.1%
5  Genzyme Corp. (6)            1.9%   15 Staples, Inc. (19)           1.1%
6  Annaly Capital Management,
    Inc. (11)                   1.6%   16 Genentech, Inc. (22)         1.1%
7  Dell, Inc. (12)              1.6%   17 Teva Pharmaceutical
                                           Industries Ltd. (23)        1.1%
8  Microsoft Corp. (7)          1.5%   18 Amgen, Inc. (34)             1.1%
9  Johnson & Johnson (9)        1.4%   19 Gilead Sciences, Inc. (41)   1.1%
10 McDonald's Corp. (13)        1.3%   20 J.C. Penney Co., Inc. (16)   1.1%

        Holdings are subject to change
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Sector Breakdown (% of portfolio) *      New Holdings
-----------------------------------      ------------
  Information Technology    20.0%        Best Buy Co., Inc.
  Financials                19.9%        Brown & Brown, Inc.
  Health Care               18.2%        The Charles Schwab Corp.
  Consumer Discretionary    13.0%        Exxon Mobil Corp.
  Industrials                9.2%        Hewlett-Packard Co.
  Consumer Staples           8.7%        Kellogg Co.
  Energy                     7.6%        U.S. Bancorp
  Materials                  1.9%
  Utilities                  1.5%
                           ------
                           100.0%        Holdings Liquidated
                                         -------------------
                                         Becton, Dickinson and Co.
                                         Danaher Corp.
                                         D.R. Horton, Inc.
                                         General Dynamics Corp.
                                         ITT Corp.
                                         J.B. Hunt Transport Services, Inc.
                                         NetApp, Inc.
                                         Transocean, Inc.
                                         Wachovia Corp.

* Based on Standard & Poor's and MSCI Barra 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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