SOURCE: ALPS Advisers, Inc.

September 10, 2007 11:51 ET

Liberty All-Star® Equity Fund August 2007 Monthly Update

BOSTON, MA--(Marketwire - September 10, 2007) - Below is the August 2007 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                        August 2007 Monthly Update



                                                      Market     Premium /
Performance                                 NAV       Price     (Discount)
-----------                             ----------  ----------  ----------
   Beginning of month value             $     8.69  $     8.71        0.2%
   Distributions (Ex-Date August 8)     $     0.22  $     0.22
   End of month value                   $     8.52  $     8.28       (2.8%)
   Performance for month                       0.6%       (2.4%)
   Performance year-to-date                    5.0%        8.0%

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                               $ 1,350.3
   Equities                            $ 1,325.7
   Percent Invested in Equities             98.2%
                                       =========


Top 20 Holdings at Month-End (32.0% of equity portfolio)
------------------------------------------------------
      (Rank from previous month)


1 Citigroup (1)          2.5%   11 Pfizer (16)                         1.4%
2 Schlumberger (3)       2.5%   12 QUALCOMM (10)                       1.4%
3 Microsoft (2)          2.3%   13 Oracle (14)                         1.4%
4 Fannie Mae (4)         2.0%   14 Teva Pharmaceutical Industries (18) 1.4%
5 Wal-Mart (7)           1.7%   15 Google (17)                         1.4%
6 Freddie Mac (9)        1.7%   16 Johnson & Johnson (21)              1.4%
7 Cisco Systems (6)      1.6%   17 Countrywide Financial (5)           1.2%
8 General Electric (12)  1.6%   18 Amazon.com (11)                     1.2%
9 Bank of America (15)   1.5%   19 Annaly Capital Management (20)      1.2%
10 Dell (13)             1.5%   20 Navistar International (19)         1.1%

      Holdings are subject to change


Sector Breakdown (% of equity portfolio) *  New Holdings
                                            ---------------
Information Technology        23.7%         Express Scripts
Financials                    22.8%         IntercontinentalExchange
Industrials                   12.8%         iStar Financial
Health Care                   12.6%         National Oilwell Varco
Consumer Discretionary         9.7%         Novellus
Energy                         8.7%         Office Depot
Consumer Staples               3.7%         PharMerica
Telecommunication Services     2.4%         Redwood Trust
Materials                      1.8%
Utilities                      1.8%         Holdings Liquidated
                             -----          -------------------
                             100.0%         AON
                                            Disney
                                            Franklin Resources
                                            GameStop
                                            Gilead Sciences
                                            IndyMac Bancorp
                                            Peabody Energy
                                            SLM
                                            Southwest Airlines
                                            Union Pacific
                                            Weatherford International
                                            Wells Fargo
                                            Zimmer Holdings

*  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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