Capital Alliance Income Trust Ltd. Announces Fifth Consecutive Quarterly Dividend at $1.80 Annual Rate.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 28, 2003

Capital Alliance Income Trust Ltd. ("CAIT") (AMEX:CAA) announced that its Board has declared a dividend of $0.45 per Common Share for the third quarter of 2003. This is CAIT's fifth consecutive quarterly dividend at an annualized rate of $1.80. Based on the current common stock price of $19.08 per share, the annualized dividend yield is 9.43%. The dividend is payable on August 15, 2003 to shareholders of record on August 7, 2003.

CAIT is a specialty residential lender which originates and invests in conforming and high-yielding, non-conforming residential mortgage loans on one-to-four-unit-residential properties located primarily in California and other western states. It also originates loans for sale to investors, on a whole-loan basis for cash through its mortgage banking subsidiary, Capital Alliance Funding Corporation. All loans with a combined loan-to-value ratio of greater than 75% of the collateral's appraised value at the time of funding are pre-sold into the secondary market. Only residential loans with a combined loan-to-value of 75% or less are retained in CAIT's portfolio of mortgage investments.

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.