SOURCE: ALPS Advisers, Inc.

March 11, 2008 15:41 ET

Liberty All-Star® Equity Fund, Inc. February 2008 Monthly Update

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

                       February 2008 Monthly Update
                                                       Market     Premium /
Performance                                   NAV       Price    (Discount)
-----------                                 -------    ------    ---------
     Beginning of month value                 $7.65     $6.83      (10.7%)
     Distributions (Ex-Date Februay 27th)    ($0.19)   ($0.19)
     End of month value                       $7.19     $6.65       (7.5%)
     Performance for month                    (3.5%)     0.1%
     Performance year-to-date                 (8.6%)    (3.0%)

     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.

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Net Assets at Month-End ($millions)
----------------------------------
      Total                                   $1,284.9
      Equities                                $1,275.3
      Preferred Stocks & Convertible Bonds        $4.0

      Percent Invested in Equities               99.6%
--------------------------------------------------------------------------

Top 20 Holdings at Month-End (27.8% of equity portfolio)
-------------------------------------------------------
   (Rank from previous month)

  1 Annaly Capital Management(3) 1.8%   11 Fannie Mae(10)             1.3%
  2 Freddie Mac(2)               1.8%   12 Pfizer(13)                 1.3%
  3 Arch Coal(7)                 1.7%   13 Johnson & Johnson(15)      1.3%
  4 Citigroup(5)                 1.6%   14 Bank of America(12)        1.3%
  5 General Electric(9)          1.5%   15 Salesforce.com(14)         1.3%
  6 Genzyme(11)                  1.5%   16 Consol Energy(6)           1.2%
  7 Wal-Mart(4)                  1.4%   17 QUALCOMM(18)               1.2%
  8 Devon Energy(49)             1.4%   18 Navistar International(21) 1.2%
  9 Dell(8)                      1.4%   19 Google(16)                 1.1%
 10 Schlumberger(19)             1.4%   20 Microsoft(1)               1.1%

    Holdings are subject to change
-------------------------------------------------------

    Sector Breakdown (% of equity portfolio)*     New Holdings
    ---------------------------------------       ------------
          Financials                  23.7%       America Movil
          Information Technology      17.1%       Apache
          Health Care                 15.7%       Apple
          Industrials                 11.8%       Burlington Northern
          Consumer Discretionary      10.7%       CVS Caremark
          Energy                      10.0%       Gilead Sciences
          Consumer Staples             6.2%       Omnicom Group
          Materials                    2.0%       Qimonda Finance
          Utilities                    1.7%        (Convertible Bond)
          Telecommunication Services   1.1%       Research In Motion
                                     100.0%       Weatherford International
                                                  XTO Energy

                                                  Holdings Liquidated
                                                  -------------------
                                                  Danaher
                                                  Entergy
                                                  National Oilwell Varco
                                                  Precision Castparts
                                                  USG


* 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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