Capital Alliance Income Trust Ltd. Announces Resumption and Declaration of Common Share Dividends for Second Quarter.

SAN FRANCISCO--(BUSINESS WIRE)--June 22, 1999--

Capital Alliance Income Trust Ltd. ("CAIT"), a home mortgage real estate investment trust (AMEX: CAA), announced that it has reinstated the payment of its common share dividend at $.085 per share.

The dividend will be payable on July 15, 1999 to shareholders of record on July 1, 1999. CAIT had omitted its common share dividend in April to conserve capital for the expansion of the wholesale loan origination capacity of its mortgage banking conduit subsidiary, Capital Alliance Funding Corporation ("CAFC").

Thomas B. Swartz, CAIT's Chairman and CEO, noted that, "as expected, the increased costs of expanding CAFC's wholesale loan origination capacity will adversely affect CAIT's earnings for the second quarter since 99% of CAFC's earnings (losses) are reflected in CAIT's financial statements." Swartz noted also that, "the positive momentum from the ramp-up of CAFC's wholesale origination operations warranted the reinstatement of CAIT's common share dividends at this time and should result in increased whole loan sales and a positive effect on CAIT's earnings during the third quarter." CAIT's Board will continue to review the progress of CAFC's and CAIT's operating results during the third and fourth quarters and will, as required by the REIT Rules, distribute 95% of CAIT's net income.

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.