Goals from Curtis Woodhouse and Craig Fagan gave Birmingham the victory.
Liverpool: Pegguy Arphexad, Jon Otsemobor, David Raven, Abel Xavier, John Welsh, Igor Biscan, Bruno Cheyrou, Darren Potter, Patrik Berger, Daniel Sjolund, Bernard Diomede.
Subs: Patrice Luzi, Mark Smyth, Stephen Vaughan, Stephen McNulty, Chris Butler.