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


BOSTON, MA -- (MARKET WIRE) -- February 8, 2007 --Below is the January 2007 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                         January 2007 Monthly Update

                                                              Premium /
Performance                          NAV       Market Price   (Discount)
-----------                      ------------  ------------  ------------
   Beginning of month value         $8.76          $8.29        (5.4%)
   Distributions                        -              -
   End of month value               $8.89           $8.48       (4.6%)
   Performance for month              1.5%            2.3%
   Performance year-to-date           1.5%            2.3%

   For daily data visit the Fund's website at www.all-starfunds.com or
   call 1-800-241-1850.  Daily NAV is available under the symbol XUSAX.



Net Assets at Month-End ($millions)
-----------------------------------
   Total                              $1,393.4
   Equities                           $1,333.6
   Percent Invested in Equities           95.7%



Top 20 Holdings at Month-End (31.3% of equity portfolio)
--------------------------------------------------------
   (Rank from previous month)

1  Microsoft (1)                    2.4%     11 Reliant Energy (15)   1.4%
2  JPMorgan Chase (4)               2.2%     12 Cisco Systems (19)    1.4%
3  Countrywide Financial (2)        2.2%     13 MetLife (11)          1.4%
4  Fannie Mae (3)                   2.0%     14 Freddie Mac (12)      1.3%
5  Citigroup (5)                    1.8%     15 Google (18)           1.3%
6  Pfizer (7)                       1.6%     16 QUALCOMM (17)         1.3%
7  Wal-Mart (8)                     1.6%     17 Oracle (21)           1.3%
8  American International Group (9) 1.5%     18 General Electric (13) 1.3%
9  Johnson & Johnson (10)           1.5%     19 Schlumberger (6)      1.2%
10 Tyco International (14)          1.4%     20 Morgan Stanley (16)   1.2%



Sector Breakdown (% of equity portfolio)*       New Holdings
----------------------------------------        ------------
   Financials                  26.7%            Coca-Cola
   Information Technology      19.9%            CONSOL Energy
   Consumer Discretionary      14.1%            Fidelity National
   Health Care                 13.1%             Information Services
   Industrials                 12.6%            Motorola
   Energy                       4.9%            Smithfield Foods
   Consumer Staples             4.3%
   Utilities                    2.4%            Holdings Liquidated
   Telecommunication Services   1.1%            -------------------
   Materials                    0.9%            Activision
                              -----             AstraZeneca
                              100.0%            Novartis
                                                Paccar
                                                Triad Hospitals
                                                UBS

   *  Based on Standard & Poor's and Morgan Stanley Capital International
      Global Industry Classification Standard (GICS).

Contact Information: Contact: Liberty All-Star® Equity Fund 617-434-5949