Capital Alliance Income Trust Ltd. Announces Reinstatement of Dividend for First Quarter, Expanded its Stock Repurchase Plan, and Expiration of Common Share Warrants.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 22, 2000

Capital Alliance Income Trust Ltd. ("CAIT"), (AMEX:CAA), a specialty non-confirming residential mortgage finance company, announced that as a result of improving profitable results in its mortgage portfolio lending operations, it had reinstated and declared its Common Share dividend for the first quarter 2001 at $.085 per Common Share. The dividend is payable January 15, 2001 to shareholders of record January 1, 2001. It also announced the expansion of its existing Stock Purchase Plan (bringing to $550,000 the amount allocated for that plan), which should further enhance shareholder value.

CAIT also announced that its outstanding Common Share warrants (which are exercisable at $5.60 per share) will expire on April 20, 2001.

CAIT is a specialty residential mortgage lender which invests in high-yielding, non-confirming 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 and Freddie Mac on a whole loan basis for cash through CAFC.

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.