Liberty All-Star(R) Equity Fund September 2009 Update

• Press Release
• Source: ALPS Advisors, Inc.
• On 9:46 am EDT, Friday October 9, 2009

BOSTON, MA--(Marketwire - 10/09/09) - Below is the September 2009 Monthly Update for the Liberty All-Star� Equity Fund. (NYSE:USA - News)

�
                      September 2009 Monthly Update


     Performance                           NAV     Market Price    Discount
     -----------                           ---     ------------    --------
        Beginning of month value          $4.87       $3.87         20.5%
        Distributions                       -           -
        End of month value                $5.10       $4.23         17.1%
        Performance for month              4.7%        9.3%
        Performance year-to-date          28.2%       29.7%

        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.
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     Net Assets at Month-End ($millions)
        Total                             $930.9
        Equities                          $910.4
        Preferred Stocks                    $0.7

        Percent Invested                   97.9%
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     Top 20 Holdings at Month-End (27.8% of portfolio)
        (Rank from previous month)

      1 Bank of America Corp.(2)       2.3%   11 Arch Coal, Inc.(16)   1.2%
      2 Dell, Inc.(1)                  2.3%   12 Forest Oil Corp.(14)  1.2%
      3 Microsoft Corp.(3)             2.1%   13 RRI Energy, Inc.(13)  1.2%
      4 Chesapeake Energy Corp.(5)     1.6%   14 Corning, Inc.(12)     1.1%
      5 Visa, Inc., Class A(6)         1.6%   15 The Boeing Co.(17)    1.1%
      6 eBay, Inc.(24)                 1.4%   16 J.C. Penney
      7 PNC Financial Services                    Co., Inc.(18)        1.1%
         Group, Inc.(23)               1.4%   17 Apple, Inc.(20)       1.1%
      8 The Allstate Corp.(8)          1.3%   18 Magna International,
      9 Research In Motion Ltd.(10)    1.3%       Inc., Class A (11)   1.1%
     10 JPMorgan Chase & Co.(9)        1.2%   19 QUALCOMM, Inc.(4)     1.1%
                                              20 Google, Inc.,
                                                  Class A(19)          1.1%

        Holdings are subject to change
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     Sector Breakdown (% of portfolio) *     New Holdings
                                             ------------------------------
        Information Technology     26.2%     Accenture PLC, Class A
        Financials                 17.0%     Axis Capital Holdings Ltd.
        Consumer Discretionary     13.2%     CareFusion Corp.
        Energy                     12.8%     Danaher Corp.
        Health Care                11.5%     The Dun & Bradstreet Corp.
        Industrials                 8.8%     Exxon Mobil Corp.
        Consumer Staples            4.9%     Hewlett-Packard Co.
        Materials                   2.9%     Massey Energy Co.
        Utilities                   2.4%     Smithfield Foods, Inc.
        Telecommunication Services  0.3%     UnitedHealth Group, Inc.
                                  ------     Vodafone Group PLC
                                  100.0%

                                             Holdings Liquidated
                                             ------------------------------
                                             CME Group, Inc.
                                             Quest Diagnostics, Inc.
                                             Petroleo Brasileiro S.A.

      * 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.

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