Tim Hortons and Kahala Corp extend Cold Stone Creamery co-branding test to six Tim Hortons locations in Canada



    OAKVILLE, ON, June 11 /CNW/ - Tim Hortons Inc. (NYSE:   THI, TSX: THI) and
Kahala Corp - parent company of Cold Stone Creamery - today announced an
extension of the companies' successful co-branding test to six Tim Hortons
restaurants in Canada.
    The two organizations announced a co-branding test initiative in March
2009 involving up to 50 locations in the United States for each chain
following a successful test in two Rhode Island Tim Hortons locations.
Currently, a total of 38 restaurants have been fully rebranded to the new
combined Cold Stone Creamery and Tim Hortons concept.
    "Our customers have responded enthusiastically to our co-branded test
locations in the U.S. and the signature Cold Stone product offerings available
at our restaurants," said Roland Walton, chief operations officer, Canada, Tim
Hortons Inc. "We will test the co-branded platform in six Canadian restaurants
to determine the potential in Canada and our ability to maintain the same high
standard of quality and service our customers expect."
    "The combination of these two strong complementary brands has created a
positive consumer response in U.S. test locations," said Dan Beem, president,
Cold Stone Creamery. "We look forward to introducing our premium ice cream
indulgences to the Canadian market and leveraging Tim Hortons' tremendous
market share and reputation for quality and freshness."
    All six co-branded locations are targeted to be opened by the end of
June. The six locations will be in Mississauga, Hamilton, Toronto, Oakville
and Pickering.

    About Tim Hortons Inc.

    Tim Hortons is the fourth largest publicly-traded quick service
restaurant chain in North America based on market capitalization, and the
largest in Canada. Tim Hortons appeals to a broad range of consumer tastes,
with a menu that includes coffee and donuts, premium coffees, flavored
cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh
baked goods. As of March 29, 2009, Tim Hortons had 3,457 systemwide
restaurants, including 2,930 in Canada and 527 in the United States. More
information about the Company is available at www.timhortons.com.

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    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, Ariz., 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 12 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.

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    Tim Hortons Safe Harbor Statement

    Certain information in this news release, particularly information
regarding future economic performance, finances, and plans, expectations and
objectives of management, is forward-looking as contemplated under the Private
Securities Litigation Reform Act of 1995. Various factors including those
described as "risk factors" in the Company's 2008 Annual Report on Form 10-K,
filed February 26, 2009, and those risk factors set forth in our Safe Harbor
Statement available on our website, as well as other possible factors not
listed or described in the foregoing, 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 and time made.
    Except as required by federal or provincial securities laws, the Company
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 Company's Safe Harbor Statement at
timhortons.com/en/about/safeharbor.html.





For further information:

For further information: Investors: Scott Bonikowsky, (905) 339-6186 or
investor_relations@timhortons.com; Media: David Morelli, (905) 339-6277 or
morelli_david@timhortons.com and Jami Clark, (480) 362-4956 or
jclark@kahalacorp.com


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