Sutter Responds to Capital Alliance Statement

Apr 20, 2001, 01:00 ET from Sutter Capital Management, LLC

    SAN FRANCISCO, April 20 /PRNewswire Interactive News Release/ --
 Sutter Capital Management, LLC, manager of Sutter Opportunity Fund 2, LLC,
 today responded to statements made by Capital Alliance Income Trust
 (Amex:   CAA) ("CAIT") and its Chairman and CEO, Thomas Swartz.
     Robert Dixon, President of Sutter Capital Management, said, "We are
 concerned about certain inconsistencies in the words and actions of senior
 management at Capital Alliance."
 
     Sutter Capital Management contends that certain facts should concern
 shareholders:
 
     -- CAIT's board says it believes Sutter's $4.415 per share offer is
 "inadequate" and "opportunistically taking advantage of ... mispricing in the
 equity markets," but neither the board nor Mr. Swartz bothered to make this
 same recommendation to shareholders as they and other insiders acquired
 approximately 12% of the company's common stock, almost all of which was
 purchased at prices between $2.50 and $3.44. They were apparently not
 concerned at that point about "depriving any stockholder ... of the
 opportunity to realize the long term value" of their shares.
     -- CAIT's common stock posted a stunning 70% decline from its original
 offer price of $8.00 to a low of $2.38 in under two years.  During that same
 time, while CAIT's shareholders suffered severe losses, CAIT's senior
 management's options to purchase stock at $8.00 per share were cancelled and
 new options were reissued to purchase stock at $3.00 per share.
     -- According to Mr. Swartz, Capital Alliance Advisors, Inc. has acquired
 over 5% of CAIT's common stock.  However, to Sutter's knowledge it has not
 filed form 13D with the SEC, which is required by federal law when anyone
 purchases 5% or more of the outstanding common stock of a public company.
     -- CAIT still has not filed its annual report for 2000 on form 10-K with
 the SEC as required.  CAIT had previously said it would file its 10-K by
 April 15, 2001.  CAIT is now 20 days past the original deadline of March 30
 for filing its 10-K.
 
     Shareholders are urged to consider the behavior of CAIT's management in
 determining whether or not to tender their shares to Sutter.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X70260176
 
 

SOURCE Sutter Capital Management, LLC
    SAN FRANCISCO, April 20 /PRNewswire Interactive News Release/ --
 Sutter Capital Management, LLC, manager of Sutter Opportunity Fund 2, LLC,
 today responded to statements made by Capital Alliance Income Trust
 (Amex:   CAA) ("CAIT") and its Chairman and CEO, Thomas Swartz.
     Robert Dixon, President of Sutter Capital Management, said, "We are
 concerned about certain inconsistencies in the words and actions of senior
 management at Capital Alliance."
 
     Sutter Capital Management contends that certain facts should concern
 shareholders:
 
     -- CAIT's board says it believes Sutter's $4.415 per share offer is
 "inadequate" and "opportunistically taking advantage of ... mispricing in the
 equity markets," but neither the board nor Mr. Swartz bothered to make this
 same recommendation to shareholders as they and other insiders acquired
 approximately 12% of the company's common stock, almost all of which was
 purchased at prices between $2.50 and $3.44. They were apparently not
 concerned at that point about "depriving any stockholder ... of the
 opportunity to realize the long term value" of their shares.
     -- CAIT's common stock posted a stunning 70% decline from its original
 offer price of $8.00 to a low of $2.38 in under two years.  During that same
 time, while CAIT's shareholders suffered severe losses, CAIT's senior
 management's options to purchase stock at $8.00 per share were cancelled and
 new options were reissued to purchase stock at $3.00 per share.
     -- According to Mr. Swartz, Capital Alliance Advisors, Inc. has acquired
 over 5% of CAIT's common stock.  However, to Sutter's knowledge it has not
 filed form 13D with the SEC, which is required by federal law when anyone
 purchases 5% or more of the outstanding common stock of a public company.
     -- CAIT still has not filed its annual report for 2000 on form 10-K with
 the SEC as required.  CAIT had previously said it would file its 10-K by
 April 15, 2001.  CAIT is now 20 days past the original deadline of March 30
 for filing its 10-K.
 
     Shareholders are urged to consider the behavior of CAIT's management in
 determining whether or not to tender their shares to Sutter.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X70260176
 
 SOURCE  Sutter Capital Management, LLC