Capital Alliance Income Trust Announces Fourth Consecutive Increased Quarterly Dividend and Continued Strength in Operating Results.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--June 24, 2002

Capital Alliance Income Trust Ltd. ("CAIT") -- (AMEX:CAA), a residential mortgage REIT operating both mortgage investment and mortgage banking businesses, announced the fourth consecutive increased Common Share dividend. The dividend rate of $.45 per Common Share is a 12.5% increase over the prior quarter's dividend and a 76.5% increase over 2001's same quarter payment. Based on the closing common stock price of $17.60 per share on June 21, 2002, the annualized dividend yield is 10.23%.

The dividend is payable on July 15, 2002 to shareholders of record on July 5, 2002.

Dennis R. Konczal, CAIT's president and chief operating officer, noted that "CAIT's increasing common dividends are indicative of underlying operating results that have continued to improve. Even as interest rate driven refinancings decline, the demand for our portfolio loan product continues to increase. This is because we provide residential borrowers, with significant equity in their properties, unique access to various 'niche' bridge financing options not available from more traditional lenders."

Richard J. Wrensen, CAIT's Executive vice president and chief financial officer, stated "the mortgage portfolio's growth continues to provide strong operating results and CAIT's under leveraged balance sheet continues to provide the capacity for growth. We are enthusiastic about our current and future opportunities. Our people are focused and our strategy is increasing shareholder value. The Board of Directors is delighted to approve our fourth consecutive dividend increase."

The Board of Directors also announced that commencing in the fourth quarter 2002, CAIT's common shareholder of record and dividend payment dates will change. Common dividends will be payable to shareholders of record one month and six business days after the calendar quarter's end. The common share dividend will be paid about the 15th of the month, but not later than eight (8) business days after the record date. Therefore, the fourth quarter's dividend is now scheduled to be announced in late October for common shareholders of record November 8, 2002 and will be payable on November 15, 2002. The change will provide CAIT's Board of Directors additional time to consider CAIT's dividend requirement. As a REIT, CAIT is required to distribute 90% of its annual taxable income.

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 and liquidity can differ materially from those anticipated in these forward-looking statements because of changes in the level and composition of CAIT's investments and unforeseen 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 for fluctuations in interest rates and levels of mortgage prepayments, 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.