Capital Alliance Income Trust Announces Accretive Purchase of Common Shares and Continued Improvement in Operating Results.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 13, 2001

Capital Alliance Income Trust Ltd. ("CAIT") (AMEX: CAA), a non-conforming specialty residential finance company, announced that it has purchased 47,500 Shares of its Common Stock from Sutter Opportunity Fund 2, LLC, which had acquired the shares in the open market and in a lightly received tender offer this last April. The purchase was accretive in value and resulted in a $.74 per share increase in the book value of CAIT's Common Shares. The purchase was coupled with a three-year "standstill" agreement.

Richard J. Wrensen, Chief Financial Officer of CAIT, stated that "the purchase not only increased the book value per CAIT Common Share to $20.49 per share, but the transaction, when coupled with CAIT's improved operating results, should produce improved earnings per share for the third quarter (ending September 30, 2001) as compared to its basic earnings per share of $.26 per share in each of the prior two quarters."

CAIT is a specialty residential mortgage lender which invests in high-yielding, non-conforming and conforming residential mortgage loans on one-to-four unit residential properties located primarily in California and other western states. It also originates non-conforming and conforming loans for sale to investors, including Freddie Mac, on a whole loan basis for cash through its mortgage banking subsidiary, Capital Alliance Funding Corporation.

Certain oral and written statements of the management of CAIT included in this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The accuracy of such statements cannot be guaranteed, as they are subject to a variety of risks and contingencies.