Capital Alliance Income Trust Appoints Independent Director to Its Board

Business Wire, May 25, 2007

SAN FRANCISCO -- Capital Alliance Income Trust ("CAIT") (AMEX:CAA) a specialty lender organized as a real estate investment trust ("REIT") , announced the appointment of H. Thomas Fehn to its Board of Directors. The appointment increases the size of the Board to seven members and for the first time since the Company's founding (1991), Independent Directors constitute a majority of CAIT's Board of Directors. Independent Directors now exceed the American Stock Exchange's Small Business filer Independent Director representation requirements.

Mr. Fehn, 64, is a founding partner (1973) of Fields, Fehn and Sherwin, a boutique Los Angeles law firm that specializes in all aspects of securities law. Since his admission to the California Bar in 1969, he has served in private practice as an attorney. Mr. Fehn graduated from Loyola University of Los Angeles and received his Juris Doctor from the University of Southern California.

An April 1, 1994 civil action brought by the Securities and Exchange Commission ("SEC") found Mr. Fehn had willfully aided and abetted violations of the Securities and Exchange Act of 1934. On December 23, 1998 Mr. Fehn was suspended from practicing before the SEC for 18 months. The suspension has terminated and Mr. Fehn has resumed practice before the SEC.

About Capital Alliance Income Trust

CAIT is a specialty lender, which invests in high yielding, mortgage loans located primarily in California. Historically, only residential loans with a combined loan-to-value of 75% or less are originated for CAIT's mortgage investment portfolio. CAIT is examining strategic changes to its investing business model and investment policies to restore profitability and enhance shareholder value.

Forward Looking Statements

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.