Capital Alliance Income Trust Ltd. Announces Share Repurchase Plan and Expects Improved Fourth Quarter Earnings.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 8, 2000

Capital Alliance Income Trust Ltd., (&uot;CAIT&uot;)(AMEX:CAA), announced that its Board has approved a $250,000 Share Repurchase Plan which will enable CAIT to repurchase up to 5.6% or 83,333 of its outstanding common shares (at current price levels). Purchased shares will be held as treasury stock.

Thomas B. Swartz, CAIT's Chairman and CEO, commented, &uot;CAIT is very strong financially with practically no debt and improving operations and earnings after the recent expansion of its mortgage banking operations. We believe that the Company's stock is an excellent value with an attractive yield, that the current market does not properly reflect the potential value of CAIT, and that the repurchase will enhance shareholder values. We believe that it is appropriate at this time.&uot;

Swartz also noted, that while final figures are not yet available, Fourth Quarter earnings are expected to be much improved over those in the Third Quarter.

CAIT is a specialty residential mortgage finance company which invests primarily in high-yielding, non-conforming residential mortgages on one-to-four unit properties located primarily in California and other western states. It also originates similar loans for sale to investors on a whole loan basis through Capital Alliance Funding Corporation, its wholesale mortgage banking subsidiary.

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.