Capital Alliance Income Trust Ltd. Receives Notice of Noncompliance With an AMEX Listing Requirement.

SAN FRANCISCO -- Capital Alliance Income Trust Ltd. ("CAIT") (AMEX:CAA) a residential mortgage REIT, has received notice from the American Stock Exchange ("Exchange") of noncompliance with the Exchange's continued listing standards due to CAIT's delay in filing Form 10-QSB with the Securities and Exchange Commission for the six months ending June 30, 2006.

The company explained that the delay is caused by the coordination of schedules necessary to review and approve the 10-QSB. A press release dated August 22, 2006, announced CAIT's earnings and revenues for the three and six months ended June 30, 2006 and 2005.

If CAIT has not satisfied the Exchange's listing requirements by September 5, 2006, CAIT must submit a compliance plan to the Exchange by September 5, 2005 that demonstrates its ability to regain compliance by October 5, 2006. If CAIT has not filed its 10-QSB by September 5, 2005, CAIT intends to file such a plan with the Exchange to maintain its common share listing. CAIT's management expects to satisfy the Exchange's continued listing requirements on or before October 5, 2006.

CAIT is a specialty residential lender, which invests in conforming and high yielding, non-conforming residential mortgage loans on one-to-four unit residential properties located primarily in California. Only residential loans with a combined loan-to-value of 75% or less are originated for CAIT's mortgage investment portfolio. Due to the disposal of CAFC, unsold mortgages with a loan-to-value greater than 75% may be transferred to CAIT.

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, operations and liquidity may differ materially from those anticipated in these forward-looking statements because of changes in the level and composition of CAIT's investments and unseen 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 of fluctuations in interest rates and levels of mortgage payments, 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.