BOSTON, MA -- (MARKET WIRE) -- February 20, 2007 -- The Board of Trustees of Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.23 per share payable on March 19, 2007 to shareholders of record on March 2, 2007 (ex-dividend date of February 28, 2007).

The distribution will be paid in cash. Shareholders participating in Liberty All-Star Equity Fund's Dividend Reinvestment Plan and Cash Purchase Plan will receive shares purchased for them on the open market by the Plan Agent (if the shares are trading at a discount from their net asset value) or issued to them by the Fund (if the shares are trading at or above their net asset value).

Liberty All-Star Equity Fund is a multi-managed, closed-end investment company with more than $1.4 billion in net assets. The Fund's shares are listed on the New York Stock Exchange under the symbol USA.

Contact Information: For Information Contact: Liberty All-Star Equity Fund 617-434-5949