BOSTON, MA--(MARKET WIRE)--Sep 9, 2008 --
Below is the August 2008 Monthly Update for the Liberty All-Star® Equity Fund. (USA - News)

 
                         August 2008 Monthly Update

                                                               Premium /
Performance                            NAV     Market Price    (Discount)
-----------                           -----    ------------    ----------
  Beginning of month value            $6.55       $5.78          (11.8%)
  Distributions (Ex-Date August 27)   $0.17       $0.17
  End of month value                  $6.43       $5.63          (12.4%)
  Performance for month                0.8%        0.3%
  Performance year-to-date           (13.9%)      (12.7%)

  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                                   $1,148.4
  Equities                                $1,143.8
  Preferred Stocks & Convertible Bonds        $5.3

  Percent Invested                           100.1%
---------------------------------------------------------------------------

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

1  QUALCOMM, Inc. (1)         2.5%   11 Genzyme Corp. (18)           1.3%
2  Citigroup, Inc. (2)        2.2%   12 Bank of America Corp. (7)    1.3%
3  Schlumberger Ltd. (10)     1.9%   13 Arch Coal, Inc. (9)          1.3%
4  Wal-Mart Stores, Inc. (3)  1.9%   14 Apple, Inc. (80)             1.1%
5  Dell, Inc. (4)             1.6%   15 J.C. Penney Co., Inc. (38)   1.1%
6  Capital One Financial
    Corp. (8)                 1.4%   16 Morgan Stanley (19)          1.1%
7  Microsoft Corp. (12)       1.4%   17 Google, Inc., Class A (17)   1.1%
8  Johnson & Johnson (6)      1.4%   18 Staples, Inc. (22)           1.1%
9  Annaly Capital Management,
   Inc. (5)                   1.4%   19 JPMorgan Chase & Co. (16)    1.0%
10 Amazon.com, Inc. (13)      1.3%   20 McDonald's Corp. (20)        1.0%

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

Sector Breakdown (% of portfolio) *     New Holdings
-----------------------------------     ------------
  Information Technology  24.2%         Alcoa, Inc.
  Financials              18.9%         Allegheny Energy, Inc.
  Health Care             16.1%         ITT Corp.
  Consumer Discretionary  13.5%         Union Pacific Corp.
  Industrials             11.1%
  Energy                   7.9%         Holdings Liquidated
  Consumer Staples         5.1%         -------------------
  Materials                1.7%         Aflac, Inc.
  Utilities                1.5%         Allegheny Technologies, Inc.
                         ------         Apache Corp.
                         100.0%         Bombardier, Inc., Class B
                                        Corning, Inc.
                                        CVS Caremark Corp.
                                        EnCana Corp.
                                        Liberty Media Corp. - Entertainment
                                        NIKE, Inc., Class B
                                        The PMI Group, Inc.
                                        Potash Corp. of Saskatchewan, Inc.
                                        SanDisk Corp.


  * 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