BOSTON, MA--(MARKET WIRE)--Jul 28, 2008 -- The Board of Directors of Liberty All-Star Growth Fund, Inc. (ASG - News) has declared a distribution of $0.12 per share payable on September 22, 2008 to shareholders of record on August 8, 2008 (ex-dividend date of August 6, 2008). The distribution is in accordance with the Fund's current distribution policy of paying distributions on its shares totaling approximately 10 percent of its net asset value per year, payable in four quarterly installments of 2.5 percent. A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions in 2008, including the percentage of qualified dividend income, will be made after year-end.

The distribution will be paid in newly issued shares to all shareholders except those who are not participating in Liberty All-Star Growth Fund's Dividend Reinvestment Plan and who elect to receive the distribution in cash. Shares will be issued at the lower of the September 5, 2008 net asset value per share or market value per share (but not less than 95% of market value). The market value of the Fund's shares for this purpose will be the last sales price on the New York Stock Exchange.

ALPS Advisers, Inc. is the fund manager of the Liberty All-Star Growth Fund, a multi-managed, closed-end investment company with more than $144 million in net assets. The Fund's shares are listed on the New York Stock Exchange under the symbol ASG.

The Liberty All-Star Growth Fund is a closed-end fund and does not continuously offer shares. The Fund trades in the secondary market, investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value.

     For Information Contact:
     Liberty All-Star Growth Fund, Inc.
     1-800-241-1850
     http://www.all-starfunds.com