Capital Alliance Income Trust Announces Director's Resignation.

SAN FRANCISCO -- Capital Alliance Income Trust Ltd. ("CAIT") (AMEX:CAA), a residential mortgage real estate investment trust ("REIT"), announced the resignation of Harvey Blomberg, an independent director, from its Board of Directors and its audit committee. On December 12, 2006 Mr. Blomberg submitted his written notice of resignation citing both his inability to support the shareholders' choice to convert CAIT to a "Self Advised REIT" and ongoing health issues. At the annual shareholder meeting approximately 90% of the shareholder vote approved the proposal to convert CAIT to a "Self Managed REIT" from an externally managed REIT.

CAIT will immediately seek a qualified independent director to regain compliance with the American Stock Exchange's ("AMEX") listing requirements. CAIT's Board is now comprised of three non-independent directors and two independent directors. As an AMEX small business company, CAIT is required to maintain at least an equal number of independent directors.

The previously noted shareholder approval to convert CAIT to a self managed REIT from an externally managed REIT, is expected to occur no later than December 31, 2006 and will produce significant one time transition and termination expenses.

CAIT is a specialty residential lender, which invests in conforming and high yielding, non-conforming residential mortgage loans on one-to-four unit residential properties located primarily in California. Only residential loans with a combined loan-to-value of 75% or less are originated for CAIT's mortgage investment portfolio. Due to the disposal of CAFC, unsold mortgages with a loan-to-value greater than 75% may be transferred to CAIT.

This document contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) that inherently involve risks and uncertainties. CAIT's actual results, operations and liquidity may differ materially from those anticipated in these forward-looking statements because of changes in the level and composition of CAIT's investments and unseen factors. As discussed in CAIT's filings with the Securities and Exchange Commission, these factors may include, but are not limited to, changes in general economic conditions, the availability of suitable investments, fluctuations in and market expectations of fluctuations in interest rates and levels of mortgage payments, deterioration in credit quality and ratings, the effectiveness of risk management strategies, the impact of leverage, the liquidity of secondary markets and credit markets, increases in costs and other general competitive factors.