BOSTON, MA--(MARKET WIRE)--Aug 13, 2008 --
Below is the July 2008 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE:USA - News)

 
                          July 2008 Monthly Update

                                                           Premium /
Performance                       NAV      Market Price    (Discount)
-----------                       ---     -------------   -----------
   Beginning of month value      $6.65        $5.87          (11.7%)
   Distributions                   -            -
   End of month value            $6.55        $5.78          (11.8%)
   Performance for month         (1.5%)       (1.5%)
   Performance year-to-date     (14.5%)      (13.0%)

   For daily data visit the Fund's website at http://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                                   $1,169.5
        Equities                                $1,126.0
        Preferred Stocks & Convertible Bonds    $    5.6

        Percent Invested                            96.8%
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     Top 20 Holdings at Month-End (28.4% of portfolio)
     ------------------------------------------------
        (Rank from previous month)

1  QUALCOMM, Inc. (1)          2.7%      11 Devon Energy Corp. (6)     1.3%
2  Citigroup, Inc. (4)         2.2%      12 Microsoft Corp. (10)       1.3%
3  Wal-Mart Stores, Inc. (2)   2.0%      13 Amazon.com, Inc. (12)      1.3%
4  Dell, Inc. (5)              1.9%      14 Fannie Mae (9)             1.2%
5  Annaly Capital Management,            15 Salesforce.com, Inc. (13)  1.1%
    Inc. (8)                   1.4%
6  Johnson & Johnson (21)      1.4%      16 JPMorgan Chase & Co. (30)  1.1%
7  Bank of America Corp. (25)  1.3%      17 Google, Inc., Class A (11) 1.1%
8  Capital One Financial
    Corp. (16)                 1.3%      18 Genzyme Corp. (23)         1.1%
9  Arch Coal, Inc. (3)         1.3%      19 Morgan Stanley (24)        1.1%
10 Schlumberger Ltd. (14)      1.3%      20 McDonald's Corp. (19)      1.0%

        Holdings are subject to change
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Sector Breakdown (% of portfolio)*    New Holdings
----------------------------------    ------------
Information Technology   24.4%        Abbott Laboratories
Financials               19.7%        American Express Co.
Health Care              15.4%        Danaher Corp.
Consumer Discretionary   13.4%        Medtronic, Inc.
Industrials               9.7%        Monsanto Co.
Energy                    8.5%        SanDisk Corp.
Consumer Staples          5.4%        Sirius Satellite Radio, Inc.
Materials                 2.0%        St. Jude Medical, Inc.
Utilities                 1.5%        Waste Management, Inc.
                        ------
                        100.0%
                                      Holdings Liquidated
                                      -------------------
                                      The Coca-Cola Co.
                                      Colgate-Palmolive Co.
                                      iStar Financial, Inc. (Convertible
                                       Corp. Bond)
                                      Las Vegas Sands Corp.
                                      Legg Mason, Inc.
                                      Smithfield Foods, Inc.
                                      Weatherford International Ltd.
                                      Wolseley PLC
                                      XM Satellite Radio Holdings, Inc.,
                                       Class A
                                      XTO Energy, 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.

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