Liberty All-Star(R) Equity Fund July 2009 Monthly Update


BOSTON, MA--(Marketwire - August 11, 2009) - Below is the July 2009 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                         July 2009 Monthly Update

 Performance                              NAV   Market Price      Discount
 -----------                              ---   ------------      --------
     Beginning of month value            $4.36      $3.46           20.6%
     Distributions                         -          -
     End of month value                  $4.70      $3.87           17.7%
     Performance for month                7.8%      11.8%
     Performance year-to-date            16.5%      16.7%

     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                              $859.4
     Equities                           $851.2
     Preferred Stocks                     $0.7

     Percent Invested                    99.1%
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 Top 20 Holdings at Month-End (27.9% of portfolio)
 -------------------------------------------------
          (Rank from previous month)

        1 Dell, Inc.(1)              2.3%  11 The Allstate Corp. (11)  1.3%
        2 Bank of America Corp.(3)   2.1%  12 Capital One Financial
        3 Microsoft Corp.(12)        2.0%       Corp.(24)              1.2%
        4 QUALCOMM, Inc.(2)          2.0%  13 JPMorgan Chase & Co.(14) 1.2%
        5 Chesapeake Energy Corp.(5) 1.5%  14 Arch Coal, Inc.(23)      1.1%
        6 Visa, Inc., Class A(6)     1.4%  15 J.C. Penney
        7 Magna International, Inc.,          Co., Inc.(15)            1.1%
           Class A(7)                1.4%  16 WellPoint, Inc.(67)      1.1%
        8 Annaly Capital                   17 RRI Energy, Inc.(21)     1.1%
           Management, Inc.(8)       1.4%  18 Morgan Stanley(16)       1.0%
        9 Research In Motion               19 Google, Inc.,
           Ltd.(18)                  1.4%      Class A(19)             1.0%
       10 Corning, Inc.(10)          1.3%  20 Apple, Inc.(9)           1.0%

          Holdings are subject to change
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 Sector Breakdown (% of portfolio) *          New Holdings
 -----------------------------------          ------------
          Information Technology      26.7%   Adobe Systems, Inc.
          Financials                  16.6%   Citrix Systems, Inc.
          Consumer Discretionary      14.1%   CME Group, Inc.
          Energy                      12.9%   EXCO Resources, Inc.
          Health Care                 11.9%   Fiserv, Inc.
          Industrials                  7.8%   iShares Russell 1000 Value
          Consumer Staples             5.0%    Index Fund
          Materials                    2.8%   NetApp, Inc.
          Utilities                    2.2%   O'Reilly Automotive, Inc.
                                    -------   Patterson-UTI Energy, Inc.
                                     100.0%
                                              Holdings Liquidated
                                              -------------------
                                              Automatic Data
                                               Processing, Inc.
                                              Citigroup, Inc. (Preferred)
                                              EQT Corp.
                                              International Business
                                               Machines Corp.
                                              McDonald's Corp.
                                              Range Resources Corp.
                                              St. Jude Medical, Inc.

* 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.

Contact Information: Contact Information: Liberty All-Star Equity Fund 1-800-241-1850 www.all-starfunds.com