Liberty All-Star(R) Equity Fund July 2007 Monthly Update


BOSTON, MA--(Marketwire - August 8, 2007) - Below is the July 2007 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                         July 2007 Monthly Update



                                                    Market      Premium /
Performance                              NAV         Price     (Discount)
-----------                          -----------  -----------  -----------
      Beginning of month value          $9.09        $8.98        (1.2%)
      Distributions                         -            -
      End of month value                $8.69        $8.71         0.2%
      Performance for month             (4.4%)       (3.0%)
      Performance year-to-date           4.4%        10.7%

      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                          $   1,377.3
      Equities                       $   1,317.5
      Percent Invested in Equities          95.7%


Top 20 Holdings at Month-End (32.3% of equity portfolio)
-------------------------------------------------------
      (Rank from previous month)

1 Citigroup (1)           2.5%  11 Amazon.com (8)                      1.5%
2 Microsoft (2)           2.3%  12 General Electric (12)               1.4%
3 Schlumberger (4)        2.1%  13 Dell (14)                           1.4%
4 Fannie Mae (3)          2.0%  14 Oracle (26)                         1.4%
5 Countrywide Financial
 (5)                      1.8%  15 Bank of America (17)                1.4%
6 Cisco Systems (9)       1.7%  16 Pfizer (13)                         1.4%
7 Wal-Mart (7)            1.7%  17 Google (15)                         1.4%
8 Progressive (6)         1.5%  18 Teva Pharmaceutical Industries (36) 1.3%
9 Freddie Mac (10)        1.5%  19 Navistar International (16)         1.3%
10 QUALCOMM (11)          1.5%  20 Annaly Capital Management (20)      1.2%

      Holdings are subject to change


Sector Breakdown (% of equity portfolio) *      New Holdings
----------------------------------------        ------------
      Information Technology         23.8%      Discover Financial Services
      Financials                     23.7%      H&R Block
      Industrials                    12.6%      Honeywell International
      Health Care                    12.5%      IBM
      Consumer Discretionary         10.0%      Las Vegas Sands
      Energy                          8.1%      Peabody Energy
      Consumer Staples                3.7%      Weatherford International
      Telecommunication Services      2.2%      Wells Fargo
      Utilities                       1.7%
      Materials                       1.7%      Holdings Liquidated
                                    -----       -------------------
                                    100.0%      Bank of New York Mellon
                                                Becton Dickinson
                                                First Data
                                                Hartford Financial Services
                                                Hudson City Bancorp
                                                Lincoln National
                                                McGraw-Hill
                                                Novellus
                                                PepsiCo

*  Based on Standard & Poor's and Morgan Stanley Capital International
   Global Industry Classification Standard (GICS).

     The Liberty All-Star Equity Fund is a closed-end fund and does not
                        continuously offer shares.

Contact Information: For Information Contact: Liberty All-Star Equity Fund 617-426-1745 www.all-starfunds.com

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