Exhibit 99.1



                     CAPITAL ALLIANCE INCOME TRUST APPOINTS
                           NEW CHIEF EXECUTIVE OFFICER


SAN FRANCISCO - (BUSINESS WIRE) - December 29, 2006 - Capital Alliance Income
Trust Ltd. ("CAIT") (AMEX:CAA-News) a residential mortgage REIT, today announced
that effective immediately its Board of Directors has unanimously approved its
transition to a "Self Advised" REIT and the unanimous appointment of Richard J.
Wrensen as President and Chief Executive Officer.

On October 18, 2006 at the company's Annual Shareholder Meeting, approximately
90% of the shareholder vote approved the "Self Advised" proposal and the
appointment of Mr. Wrensen as President and Chief Executive Officer. Mr. Wrensen
noted that "CAIT needs to focus on reversing its losses, creating earnings,
restoring the dividend and enhancing shareholder value. These objectives are a
challenge that the new management team is eager to address. Our success will
require strategic changes to our existing business model, investment policies
and a tremendous amount of hard work."

The transition to self management has produced significant transition and
termination expenses. The former advisor received a termination payment of
approximately $500,000. For the year ended December 31, 2005 CAIT reported a net
loss of $307,308 and for the year ended December 31, 2006 expects its net loss
to exceed $900,000 (which includes one time transition and termination
expenses).

CAIT is a specialty residential lender, that has invested in conforming and high
yielding, non-conforming residential mortgage loans on one-to-four unit
residential properties 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. Due to the discontinuance of CAIT's
mortgage banking business conducted by Capital Alliance Funding Corporation,
unsold mortgages with a loan-to-value greater than 75% were transferred to CAIT
and are part of CAIT's core portfolio.

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
         Richard J. Wrensen, President and
         Chief Executive Officer - 415-288-9575
         www.calliance.com