Capital Alliance Income Trust Announces Declaration of Second Quarter Dividend and Improved Operating Results.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)-- March 23, 2001

Capital Alliance Income Trust Ltd. ("CAIT"), (AMEX:CAA - news), a non-conforming specialty residential finance company, announced that its Board has declared CAIT's second quarterly Common Share dividend for 2001 at $.085 per share.

The dividend will be payable on April 16, 2001 to shareholders of record on April 2, 2001.

Richard J. Wrensen, Chief Financial Officer of CAIT, also reported that preliminary figures reflect improved earnings of $186,000 for the fourth quarter (as compared to $65,940 for the third quarter of 2000) and $542,000 for the year 2000 (a 20.4% increase over earnings of $450,605 for the year 1999). Mr. Wrensen noted that the improvement in earnings was continuing into the first quarter of 2001, reflecting CAIT's re-emphasis of its portfolio lending operations, reduced interest costs, reduced operating expenses and profitable operations in its mortgage banking subsidiary.

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.