Capital Alliance Income Trust Ltd. Reports Delayed Filing of Form 10-K and Responds to Sutter Opportunity Fund's Comments Regarding the Delayed Filing.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 26, 2001

The senior management of Capital Alliance Income Trust Ltd. ("CAIT") (AMEX:CAA), a non-conforming specialty residential finance company, today reported that CAIT was delayed in filing its Form 10-K beyond its extended filing date of April 16, 2001. Thomas B. Swartz, chairman of CAIT, noted that it is expected that its audited financial statements will be delivered by their auditors within the next three or four business days and that the 10-K will be filed within that time frame. Swartz stated that "the delay was and has been primarily due to the serious, debilitating, long-lasting and recurring illness of CAIT's chief financial officer, and to the considerable and increased demands on our accounting staff." Swartz also stated that "the descriptive portions of the Form 10-K are basically complete but cannot be finalized until the auditors deliver the audited financial statements for 2000." He noted that "it is expected that there will be no material variances between the audited financials to be delivered by the auditors and (a) CAIT's Third Quarter 2000 Form 10-Q financials filed in November 2000 and/or (b) the preliminary earnings estimates for the fourth quarter 2000 and the year 2000, released on March 23, 2001." He also noted, however, that "one modification that CAIT does plan to incorporate in its 2000 audited financials is an increased loan-loss reserve which will have an immaterial effect on earnings. We feel that this is a prudent move, is consistent with industry standards and is required by the current state of our California economy, which could see a lowering of the value of the residential real estate which secures our loans."

Swartz also responded to the comments by the management of Sutter Opportunity Fund, which is pursuing a tender offer for up to twenty percent of CAIT's Common Shares. He noted that Sutter, in its press release responding to CAIT's Boards recommendation that Sutter's tender offer be rejected, stated that CAIT's shareholders should be "concerned" by CAIT's delayed filing of its annual report to the SEC. Swartz stated that if such warning was intended to imply that something was wrong with CAIT's business affairs, no such implication was warranted. He noted that "since September 2000, when CAIT re-emphasized its profitable core portfolio mortgage lending business and obtained a new, favorably-priced $12 million term and warehousing credit facility from a financial institution, CAIT's operating performance has improved." "In fact," he noted, "as reported in CAIT's March 23, 2001 press release, CAIT's preliminary figures reflected improved earnings for the fourth quarter of 2000 and for the year 2000 and also reflected that the improvement in earnings was continuing into the first quarter of 2001."

CAIT is a specialty residential mortgage lender which invests in high-yielding, non-conforming and conforming residential mortgage loans on one-to-four unit residential properties located in 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 its subsidiary, Capital Alliance Funding Corporation.

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.