Capital Alliance Income Trust Announces Increased Fourth Quarterly Dividend and Reports Continued Improvement in Operating Results.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 19, 2001

Capital Alliance Income Trust Ltd. ("CAIT") (AMEX:CAA), a non-conforming specialty residential finance company, announced that its Board has declared CAIT's fourth quarterly Common Share dividend for 2001 at the increased rate of $.28 per Common share, which is a 9.8% increase over the previous dividend rate of $.255 per Common Share.

The dividend will be payable on Oct. 16, 2001 to shareholders of record on Oct. 1, 2001.

Thomas B. Swartz, chairman and chief executive officer of CAIT stated that "the increased dividend reflects the increased earnings of CAIT which, as a real estate investment, must distribute 90% of its income." Swartz noted also that CAIT's improvement in earnings was continuing in the third quarter of 2001 and reflects CAIT's re-emphasis of its portfolio lending operations, reduced interest costs, increased operating efficiencies 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.