SOURCE: ALPS Advisers, Inc.

June 11, 2008 12:34 ET

Liberty All-Star® Equity Fund May 2008 Monthly Update

BOSTON, MA--(Marketwire - June 11, 2008) -


Below is the May 2008 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                         May 2008 Monthly Update

                                                                  Premium /
Performance                              NAV     Market Price    (Discount)
------------                            -----    ------------    ----------
   Beginning of month value             $7.45        $6.74         (9.5%)
   Distributions (Ex-Date May 28)       $0.19        $0.19
   End of month value                   $7.38        $6.57        (11.0%)
   Performance for month                  1.6%         0.3%
   Performance year-to-date              (3.7%)       (1.3%)

   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                                   $1,318.5
        Equities                                $1,302.2
        Preferred Stocks & Convertible Bonds        $5.5

        Percent Invested                            99.2%

Top 20 Holdings at Month-End (28.6% of portfolio)
-------------------------------------------------
   (Rank from previous month)

1  Wal-Mart Stores, Inc.(1) 2.2%  11  Navistar International Corp.(20) 1.3%
2  Freddie Mac (2)          2.0%  12  Google, Inc., Class A (15)       1.2%
3  QUALCOMM, Inc. (18)      2.0%  13  Morgan Stanley (11)              1.2%
4  Citigroup, Inc. (3)      1.6%  14  Amazon.com, Inc. (17)            1.2%
5  Arch Coal, Inc. (4)      1.6%  15  General Electric Co. (10)        1.2%
6  Dell, Inc. (13)          1.5%  16  Consol Energy, Inc. (14)         1.2%
7  Fannie Mae (5)           1.5%  17  Capital One Financial Corp.(25)  1.2%
8  Annaly Capital
    Management, Inc. (6)    1.5%  18  Microsoft Corp. (21)             1.2%
9  Devon Energy Corp. (7)   1.4%  19  Symantec Corp. (90)              1.2%
10 Schlumberger Ltd. (12)   1.3%  20  Salesforce.com (22)              1.1%

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

Sector Breakdown (% of portfolio) *    New Holdings
---------------------------------     ------------------------------
  Information Technology     22.3%    Adobe Systems, Inc.
  Financials                 22.2%    Avnet, Inc.
  Health Care                12.3%    Continental Airlines, Inc.
  Consumer Discretionary     12.2%     (Convertible Bond)
  Energy                     10.4%    EnCana Corp.
  Industrials                 9.8%    Huntington Bancshares, Inc.
  Consumer Staples            7.0%    Intuitive Surgical, Inc.
  Materials                   1.9%    Kimberly-Clark Corp.
  Utilities                   1.6%    Legg Mason, Inc.
  Telecommunication Services  0.3%    Oceaneering International, Inc.
                             -----    Schering-Plough Corp.
                             100.0%
                                      Holdings Liquidated
                                      ------------------------------
                                      America Movil SA de CV
                                      Computer Sciences Corp.
                                      Deere & Co.
                                      The Gap, Inc.
                                      Massey Energy Co.
                                      MetLife, Inc.
                                      Mobile TeleSystems OJSC
                                      NII Holdings, Inc.
                                      Sovereign Bancorp, 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.

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