Liberty All-Star(R) Equity Fund September 2007 Monthly Update


BOSTON, MA--(Marketwire - October 5, 2007) - Below is the September 2007 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)


                              September 2007 Monthly Update



                                                    Market      Premium /
Performance                              NAV        Price      (Discount)
-----------                         -----------  -----------  ------------
   Beginning of month value         $      8.52  $      8.28        (2.8%)
   Distributions                              -            -
   End of month value               $      8.82  $      8.22        (6.8%)
   Performance for month                    3.6%       (0.7%)
   Performance year-to-date                 8.9%        7.3%

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.


Net Assets at Month-End ($millions)
----------------------------------
   Total                              $ 1,416.9
   Equities                           $ 1,373.8
   Percent Invested in Equities            97.0%
                                      =========


Top 20 Holdings at Month-End (30.6% of equity portfolio)
--------------------------------------------------------
     (Rank from previous month)

1 Schlumberger (2)       2.6%   11 Dell (10)                           1.4%
2 Citigroup (1)          2.4%   12 Johnson & Johnson (16)              1.4%
3 Fannie Mae (4)         1.8%   13 Teva Pharmaceutical Industries (14) 1.4%
4 Freddie Mac (6)        1.6%   14 Pfizer (11)                         1.4%
5 Wal-Mart (5)           1.6%   15 Microsoft (3)                       1.4%
6 Cisco Systems (7)      1.6%   16 Amazon.com (18)                     1.3%
7 General Electric (8)   1.5%   17 Annaly Capital Management (19)      1.2%
8 Google (15)            1.5%   18 Salesforce.com (24)                 1.2%
9 Bank of America (9)    1.5%   19 Oracle (13)                         1.2%
10 QUALCOMM (12)         1.4%   20 3M (50)                             1.2%

      Holdings are subject to change


Sector Breakdown (% of equity portfolio)          * New Holdings
---------------------------------------            -------------------
   Information Technology            23.1%         Becton Dickinson
   Financials                        22.3%         Nokia
   Industrials                       13.1%         Qimonda
   Health Care                       12.6%         Transocean
   Consumer Discretionary             9.8%
   Energy                             9.3%         Holdings Liquidated
   Consumer Staples                   3.9%         -------------------
   Telecommunication Services         2.2%         Garmin
   Materials                          2.0%
   Utilities                          1.7%
                                    -----
                                    100.0%

*  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.

Contact Information: For Information Contact: Liberty All-Star Equity Fund 617-426-1745 www.all-starfunds.com