SOURCE: ALPS Advisers, Inc.

October 15, 2008 16:36 ET

Liberty All-Star® Equity Fund September 2008 Monthly Update

BOSTON, MA--(Marketwire - October 15, 2008) -


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

                 September 2008 Monthly Update

                                                         Premium /
Performance                     NAV     Market Price    (Discount)
-----------                    -----    ------------    ----------
   Beginning of month value    $6.43        $5.63         (12.4%)
   Distributions                 -            -
   End of month value          $5.66        $4.51         (20.3%)
   Performance for month      (12.0%)      (19.9%)
   Performance year-to-date   (24.2%)      (29.8%)

  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                                   $1,011.9
  Equities                                  $996.6
  Preferred Stocks & Convertible Bonds        $3.5

  Percent Invested                            98.8%
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Top 20 Holdings at Month-End (30.1% of portfolio)
-------------------------------------------------
     (Rank from previous month)

1  Citigroup, Inc. (2)           2.8%   11 Annaly Capital Management,
2  Capital One Financial                    Inc. (9)                   1.4%
    Corp. (6)                    2.0%   12 Dell, Inc. (5)              1.4%
3  Wal-Mart Stores, Inc. (4)     1.9%   13 McDonald's Corp. (20)       1.2%
4  The Procter & Gamble Co. (40) 1.9%   14 Amazon.com, Inc. (10)       1.1%
5  Schlumberger Ltd. (3)         1.8%   15 QUALCOMM, Inc. (1)          1.1%
6  Genzyme Corp. (11)            1.7%   16 J.C. Penney Co., Inc. (15)  1.1%
7  Microsoft Corp. (7)           1.7%   17 International Business
                                            Machines Corp. (23)        1.1%
8  Bank of America Corp. (12)    1.6%   18 Google, Inc., Class A (17)  1.1%
9  Johnson & Johnson (8)         1.6%   19 Staples, Inc. (18)          1.1%
10 JPMorgan Chase & Co. (19)     1.5%   20 Carnival Corp. (28)         1.0%

   Holdings are subject to change
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Sector Breakdown (% of portfolio) *
-----------------------------------    New Holdings
                                       ------------
  Information Technology  21.1%        ASML Holding N.V.
  Financials              19.1%        Bank of New York Mellon Corp.
  Health care             17.3%        Chesapeake Energy Corp.
  Consumer Discretionary  13.3%        Merck & Co., Inc.
  Industrials             10.2%        PepsiCo, Inc.
  Energy                   7.9%        SYSCO Corp.
  Consumer Staples         7.6%        UBS AG
  Materials                2.0%        Wells Fargo & Co.
  Utilities                1.5%
                         ------
                         100.0%        Holdings Liquidated
                                       -------------------
                                       ABB Ltd.
                                       American International Group, Inc.
                                       Continental Airlines, Inc.
                                        (Convertible Bond)
                                       Discover Financial Services
                                       The Goldman Sachs Group, Inc.
                                       Lehman Brothers Holdings, Inc.
                                       Office Depot, Inc.
                                       Oracle Corp.
                                       Southwest Airlines Co.
                                       The TJX Companies, Inc.
                                       Washington Mutual, 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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