BOSTON, MA -- (Marketwire) -- 11/12/09 -- Below is the October 2009 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

                       October 2009 Monthly Update

Performance                         NAV     Market Price    Discount
-----------                         ---     ------------    --------
   Beginning of month value        $5.10        $4.23         17.1%
   Distributions                      -           -
   End of month value              $4.91        $4.05         17.5%
   Performance for month           (3.7%)       (4.3%)
   Performance year-to-date        23.4%        24.2%

   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                           $897.0
   Equities                        $880.4
   Preferred Stocks                  $0.7

   Percent Invested                 98.2%
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Top 20 Holdings at Month-End (29.0% of portfolio)
------------------------------------------------
  (Rank from previous month)

 1 Microsoft Corp.(3)          2.3%     11 The Allstate Corp.(8)     1.3%
 2 Dell, Inc.(2)               2.2%     12 Amazon.com, Inc.(25)      1.3%
 3 Google, Inc., Class A(20)   2.1%     13 Arch Coal, Inc.(11)       1.2%
 4 Bank of America Corp.(1)    2.0%     14 Forest Oil Corp.(12)      1.2%
 5 Visa, Inc., Class A(5)      1.9%     15 JPMorgan Chase & Co.(10)  1.2%
 6 Apple, Inc.(17)             1.5%     16 Morgan Stanley(21)        1.1%
 7 Chesapeake Energy Corp.(4)  1.5%     17 J.C. Penney Co., Inc.(16) 1.1%
 8 PNC Financial Services               18 The Boeing Co.(15)        1.0%
    Group, Inc.(7)             1.4%     19 Magna International,
 9 Walgreen Co.(47)            1.4%         Inc., Class A(18)        1.0%
10 eBay, Inc.(6)               1.3%     20 QUALCOMM, Inc.(19)        1.0%

   Holdings are subject to change
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Sector Breakdown (% of portfolio)*         New Holdings
----------------------------------         ------------
   Information Technology          26.5%   Alcon, Inc.
   Financials                      17.9%   The Charles Schwab Corp.
   Consumer Discretionary          13.6%   Edison International
   Energy                          12.2%   General Electric Co.
   Health Care                     11.1%   International Business
   Industrials                      8.0%    Machines Corp.
   Consumer Staples                 5.6%   Kohl's Corp.
   Materials                        2.7%   Mastercard, Inc., Class A
   Utilities                        2.4%   McKesson Corp.
                                  ------   NIKE, Inc., Class B
                                  100.0%   Rockwell Collins, Inc.
                                           TD Ameritrade Holding Corp.
                                           Yamana Gold, Inc.

                                           Holdings Liquidated
                                           -------------------
                                           Comcast Corp., Class A
                                           Danaher Corp.
                                           The DIRECTV Group, Inc.
                                           Fluor Corp.
                                           Intel Corp.
                                           Intuit, Inc.
                                           Oracle Corp.
                                           O'Reilly Automotive, Inc.
                                           PACCAR, Inc.
                                           UnitedHealth Group, Inc.
                                           Vodafone Group PLC
                                           Weatherford International Ltd.
                                           WellPoint, Inc.
                                           Wisconsin Energy 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.