Liberty All-Star(R) Equity Fund August 2009 Update


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

                        August 2009 Monthly Update

Performance                               NAV     Market Price    Discount
                                          ---     ------------    --------
   Beginning of month value              $4.70        $3.87         17.7%
   Distributions (Ex-Date August 26)     $0.07        $0.07
   End of month value                    $4.87        $3.87         20.5%
   Performance for month                  5.1%         1.8%
   Performance year-to-date              22.4%        18.8%

   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                                 $889.5
   Equities                              $891.8
   Preferred Stocks                        $0.7

   Percent Invested                      100.3%
---------------------------------------------------------------------------

Top 20 Holdings at Month-End (27.7% of portfolio)
   (Rank from previous month)

  1 Dell, Inc. (1)              2.5%  11 Magna International, Inc.,
  2 Bank of America Corp. (2)   2.4%      Class A (7)               1.2%
  3 Microsoft Corp. (3)         2.0%  12 Corning, Inc. (10)         1.1%
  4 QUALCOMM, Inc. (4)          1.9%  13 RRI Energy, Inc. (17)      1.1%
  5 Chesapeake Energy Corp. (5) 1.5%  14 Forest Oil Corp. (21)      1.1%
  6 Visa, Inc., Class A (6)     1.4%  15 Genzyme Corp. (23)         1.1%
  7 Annaly Capital                    16 Arch Coal, Inc. (14)       1.1%
     Management, Inc. (8)       1.3%  17 The Boeing Co. (27)        1.1%
  8 The Allstate Corp. (11)     1.3%  18 J.C. Penney Co., Inc. (15) 1.1%
  9 JPMorgan Chase & Co. (13)   1.3%  19 Google, Inc., Class A (19) 1.0%
 10 Research In Motion Ltd. (9) 1.2%  20 Apple, Inc. (20)           1.0%

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

Sector Breakdown (% of portfolio) *      New Holdings
    Information Technology      26.1%    ------------
    Financials                  17.9%    CVS Caremark Corp.
    Consumer Discretionary      13.7%    Joy Global, Inc.
    Energy                      12.7%    Medco Health Solutions, Inc.
    Health Care                 11.6%    Pulte Homes, Inc.
    Industrials                  8.1%    Sigma-Aldrich Corp.
    Consumer Staples             5.0%
    Materials                    2.6%    Holdings Liquidated
    Utilities                    2.3%    -------------------
                               ------    Akamai Technologies, Inc.
                               100.0%    Centex Corp.
                                         Marvell Technology Group Ltd.


  * 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