Exhibit 99.1     Press release dated June 20, 2006

Press Release
                     CAPITAL ALLIANCE INCOME TRUST ANNOUNCES
                           FIRST QUARTER 2006 RESULTS

SAN FRANCISCO - (BUSINESS WIRE) - June 20, 2006 - Capital Alliance Income Trust
Ltd. ("CAIT") (AMEX:CAA-News) a residential mortgage REIT, announced a net loss
of $377,492 (($0.98) basic and diluted per share) for the three months ended
March 31, 2006, as compared to net income of $17,355 (($0.17) basic and diluted)
for the like period in 2005. Revenues were reported as $860,407 for the three
months ending December 31, 2006 and $846,859 for the like period in 2005.

On March 31, 2006 CAIT announced the discontinuance of its mortgage banking
activities. CAIT's management expects the aforementioned disposal to be
completed during the second quarter of 2006. CAFC's mortgage inventory will be
sold into the secondary market. Any unsold loans will be transferred to CAIT or
sold to an affiliated company at their fair market value.

CAIT's first quarter 2006 results were negatively impacted by a Real Estate
Owned from foreclosure ("REO") writedown and holding cost of approximately
$284,464, a net loss of $86,667 from the mortgage banking operations that are
being discontinued, and an additional loan loss allowance of $20,000. CAIT's
only REO is currently in contract for sale in the third quarter.

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.

Contact:  Capital Alliance income Trust Ltd.,  San Francisco
          Thomas B. Swartz, Chairman and CEO - 415-288-9575
          www.calliance.com
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