Kahala Corp and Tim Hortons Announce Multi-Store Co-Branding Test Initiative Between Cold Stone Creamery Brand and Tim Hortons



    
    Cold Stone Creamery and Tim Hortons to Transition Up To 50 Stores Each to
    Co-branded Sites by Spring 2009
    

    SCOTTSDALE, AZ and OAKVILLE, ON, Feb. 6 /CNW/ - Kahala Corp, parent
company of Cold Stone Creamery, and Tim Hortons Inc., today announced an
agreement to test co-branding of Cold Stone Creamery and Tim Hortons in up to
50 stores in each chain in the United States by spring 2009.
    Co-branded stores will leverage complementary traffic patterns, creating
cost efficient opportunities for further growth of both brands. Cold Stone
Creamery drives significant customer traffic and sales in the evening market
while Tim Hortons creates a substantial portion of its traffic and sales in
the morning and lunch dayparts.
    "We are pleased to expand our association with Tim Hortons," said Kevin
Blackwell, Chief Executive Officer & Founder of Kahala Corp. "Successful
results from our initial test stores suggest that bringing our concepts
together will increase the customer bases for both brands, allowing further
sales growth opportunities."
    The companies recently co-branded the concepts in two existing Tim
Hortons locations in Rhode Island with successful early results. In
mid-February Tim Hortons products will be offered in an existing Cold Stone
Creamery location in Ohio.
    "Continued development and awareness of the Tim Hortons brand beyond our
base of 500 restaurants in the United States is a key element of our overall
approach to U.S. growth," said Don Schroeder, President and CEO, Tim Hortons.
"Co-branding selected locations with Cold Stone Creamery, one of the most
popular ice cream concepts in the United States, is a complementary
opportunity we are looking forward to pursuing as part of this test
initiative."
    Existing Cold Stone Creamery and Tim Hortons locations in Michigan,
Western New York, Ohio, Rhode Island, Maine, and Connecticut will be
identified and reconfigured to offer both brand concepts. Once a store is
identified as a potential co-branded site, the franchisee will be approached
with the opportunity to expand their offerings with the complementary brand.
    "Cold Stone Creamery is pleased to collaborate with such a dominant and
respected brand in North America, said Lee Knowlton, Chief Operating Officer
of Kahala Corp.
    Cold Stone Creamery is known for its signature ice cream indulgences
which are handcrafted onsite with a variety of mix-ins on a frozen granite
block. Tim Hortons is known for its premium coffee, wide-range of beverages,
always fresh baked goods, and breakfast and lunch offerings, all at reasonable
prices.
    "The combination of Tim Hortons and Cold Stone Creamery products is ideal
for both businesses and the customers," said David Clanachan, Chief Operations
Officer of Tim Hortons, U.S. and International. "That is why Cold Stone
Creamery is the best partner for this test."

    About Cold Stone Creamery

    Cold Stone Creamery delivers The Ultimate Ice Cream Experience(R) through
a community of franchisees who are passionate about ice cream. The secret
recipe for smooth and creamy ice cream is handcrafted fresh daily in each
store, and then customized by combining a variety of mix-ins on a frozen
granite stone. Headquartered in Scottsdale, Arizona, Cold Stone Creamery is
subsidiary of Kahala Corp, one of the fastest growing franchising companies in
the world, with a portfolio of 12 quick service restaurant brands. Cold Stone
Creamery operates more than 1,450 locations in 11 countries worldwide.
    For more information about Cold Stone Creamery, visit the brand's Web
site at www.coldstonecreamery.com. For more information about Kahala, visit
the company's Web site at www.kahalacorp.com.

    About Tim Hortons Inc.

    Tim Hortons appeals to a broad range of consumer tastes, with a menu that
includes premium coffee, flavored cappuccinos, specialty teas, home-style
soups, fresh sandwiches and fresh baked goods. Founded in 1964, Tim Hortons is
the fourth largest publicly-traded quick service restaurant chain in North
America based on market capitalization, and the largest in Canada. As of
September 28, 2008, Tim Hortons had 3,294 systemwide restaurants. There are
more than 500 Tim Hortons restaurants in the United States. More information
about the Company is available at www.timhortons.com or
www.timhortons-invest.com.

    Tim Hortons Safe Harbor Statement

    Certain information in this news release, particularly information
regarding future economic performance and finances, and plans, expectations
and objectives of management, is forward-looking. Factors set forth in the Tim
Hortons Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995, including by reference the "risk factors" outlined in the
Company's most recent Form 10-K filed February 26, 2008, in addition to other
possible factors not listed or described in the Safe Harbor Statement, could
affect the Company's actual results and cause such results to differ
materially from those expressed in forward-looking statements.
    As such, readers are cautioned not to place undue reliance on
forward-looking statements contained in this news release, which speak only as
of the date hereof. Except as required by federal or provincial securities
laws, Tim Hortons undertakes no obligation to publicly release any revisions
to the forward looking statements contained in this release, or to update them
to reflect events or circumstances occurring after the date of this release,
or to reflect the occurrence of unanticipated events, even if new information,
future events or other circumstances have made the forward-looking statements
incorrect or misleading. Please review the Tim Hortons Safe Harbor Statement
at timhortons.com/en/about/safeharbor.html.





For further information:

For further information: Media Contacts: Angela Redding, Coltrin &
Associates, (215) 203-6432, Angela_Redding@coltrin.com; Nick Javor, Tim
Hortons Inc., (905) 339-6176, Javor_Nick@timhortons.com; Investors: Scott
Bonikowsky, Tim Hortons Inc., (905) 339-6186, Bonikowsky_Scott@timhortons.com


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