Exhibit 99.1


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


SAN FRANCISCO - (BUSINESS WIRE) - August 29, 2007 - Capital Alliance Income
Trust ("CAIT") (AMEX:CAA-News) a real estate investment trust ("REIT"), has
received a Warning Letter from the American Stock Exchange ("Exchange") of
non-compliance with the Exchange's continued listing requirements. The
previously reported 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.

President and Chief Executive Officer, Richard Wrensen noted "CAIT is committed
to the best practices of corporate governance. Prior to receiving the Exchange's
correspondence, the Board of Directors had asked the Nominating Committee to
expedite the nomination of an outstanding candidate. Our responsiveness will
demonstrate CAIT's commitment to proper corporate governance". The Exchange has
allowed CAIT until November 21, 2007 to satisfy its independent director
requirement. CAIT expects to announce the appointment of an independent director
prior to November 21, 2007.

About Capital Alliance Income Trust

CAIT is a specialty lender, organized as a REIT, which has primarily invested in
high yielding mortgage loans located in California. Historically, only
residential loans with a combined loan-to-value of 75% or less are accepted for
CAIT's mortgage investment portfolio. CAIT is examining strategic changes to its
investment 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.


Contact:    Capital Alliance Income Trust
            Gregory Bronshvag, Vice President and Secretary
            415-288-9595           gbronshvag@caitreit.com
            www.caitreit.com