Exhibit 99.2


                CAPITAL ALLIANCE INCOME TRUST RECEIVES LETTER OF
             NONCOMPLIANCE WITH AMEX CONTINUED LISTING REQUIREMENTS

SAN FRANCISCO - (BUSINESS WIRE) - January 12, 2007 - Capital Alliance Income
Trust Ltd. ("CAIT") (AMEX:CAA-News) a mortgage REIT, has received a Warning
Letter from the American Stock Exchange ("Exchange") of noncompliance with the
Exchange's continued listing requirements. The previously reported, December 15,
2006, resignation of a CAIT independent director, has reduced the number of
independent directors on CAIT's Board of Directors to one less than the
Exchange's requirement. Section 121 (B) (2) (c) of the Exchange's listing
qualifications requires that CAIT maintain a Board of Directors of at least 50%
independent directors.

The Exchange has allowed CAIT until April 5, 2007 to satisfy its independent
director requirement. CAIT is actively addressing this requirement and expects
to announce the appointment of another independent director prior to April 5,
2007.

CAIT is a specialty lender that has invested in high yielding, non-conforming
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. 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. CAIT is examining strategic changes to its
existing business model and investment policies to restore profitability and
enhance shareholder value.

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
          415-288-9595; Rwrensen@calliance.com