Bank of America Investment Advisors, Inc. Agrees to Sell Its Liberty All-Star Closed-End Fund Management Business

Bank of America Investment Advisors, Inc. Agrees to Sell Its Liberty All-Star Closed-End Fund Management Business

Boston, September 8, 2006 – Bank of America Investment Advisors, Inc. (BAIA), the investment advisor to the Liberty All-Star Funds (Funds) today announced that it has entered into an agreement with ALPS Advisers, Inc. (ALPS) to sell to ALPS its advisory business of managing the Funds.

The Funds are a family of two closed-end, NYSE-listed equity funds. They are the Liberty All-Star Equity Fund (NYSE:USA), with net assets in excess of $1.2 billion as of June 30, 2006, and the Liberty All-Star Growth Fund, Inc. (NYSE:ASG), with net assets in excess of $150 million as of June 30, 2006.Further information about the Funds may be found on line at www.all-starfunds.com.

Under terms of the agreement, BAIA’s Liberty All-Star management team is expected to join ALPS to continue managing the funds. The management team is expected to remain in Boston. The completion of the transaction is conditioned upon, among other things, shareholder approval of a new investment advisory agreement with ALPS and new sub-advisory agreements among the funds, ALPS and the various sub-advisers that manage the Funds’ portfolios. The agreements are on substantially the same terms as the investment advisory and sub-advisory agreements that are currently in effect.

The Board of Trustees/Directors of the Funds approved the investment advisory and sub-advisory agreements with ALPS on September 7, 2006. Subject to shareholder approval of the investment advisory agreements referenced above, it is expected that ALPS will become the funds’ investment adviser by year-end 2006.

ALPS will be registered as an investment adviser with the Securities and Exchange Commission prior to consummation of the transaction. ALPS is a subsidiary of ALPS Holdings, Inc. (ALPS Holdings) of Denver, Colorado. Established in 1985, ALPS Holdings provides administration, distribution, accounting and transfer agency services for open-end and closed-end mutual funds, as well as active distribution of Exchange-Traded Funds and closed-end funds. ALPS Holdings is a portfolio company of Lovell Minnick Partners LLC, a private equity firm focused on investments in the financial services industry.

BAIA is an SEC-registered investment adviser and an indirect, wholly owned subsidiary of Bank of America Corporation.

Source: Bank of America Investment Advisors, Inc.

Bank of America
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