Tim Hortons Inc. Announces New 12-Month, $200 Million Share Repurchase Program

    (All amounts in Canadian dollars)

    OAKVILLE, ON, Oct. 26 /CNW/ - Tim Hortons Inc. (NYSE:  THI, TSX: THI) today
announced the Board of Directors has approved a new 12-month, $200 million
share repurchase program as part of the Company's focus on creating value for
    A notice of intention to make a normal course issuer bid will be filed
with the Toronto Stock Exchange for a stock repurchase program authorizing the
repurchase of up to $200 million in shares, not to exceed the regulatory
maximum of 9,354,264 or 5%, of the outstanding common shares. As of October
25, 2007, there were 187,085,281 shares outstanding. Implementation of the
program is subject to final approval of the TSX.
    The Company's strong balance sheet, cash flow and focus on creating
shareholder value were key factors in the decision to implement the share
repurchase program.
    The repurchases will be made by Tim Hortons directly, or through one or
more of its direct or indirect subsidiaries, on the Toronto Stock Exchange
and/or the New York Stock Exchange, subject to compliance with applicable
regulatory requirements. As part of the stock purchase program, Tim Hortons
will also enter into a Rule 10b5-1 repurchase plan with a broker in order to
facilitate its stock repurchase activity.
    A Rule 10b5-1 repurchase plan allows the Company to purchase its shares
at times when it ordinarily would not be in the market due to regulatory or
internal restrictions. Purchases will be based upon the parameters of the Rule
10b5-1 plan. In addition to the repurchases made pursuant to the Rule 10b5-1
plan, Tim Hortons may also make repurchases at the Company's discretion from
time-to-time, subject to market conditions, share price, cash position and
compliance with regulatory requirements.
    The Company will begin implementation of the program on or about October
31, 2007, and it is expected to be in place until October 30, 2008. There can
be no assurance as to the precise number of shares that will be repurchased
under the stock repurchase program, or the aggregate dollar amount of the
shares purchased. Tim Hortons may discontinue purchases at any time, subject
to compliance with applicable regulatory requirements. Shares purchased
pursuant to the stock repurchase program will be cancelled, held in the
Company's treasury, and/or held by one of the Company's subsidiaries.
    The maximum number of shares that may be purchased during any trading day
may not exceed 118,988 shares, representing 25% of the average daily trading
volume for the shares purchased during the previous six months. This limit,
for which there are permitted exceptions, is determined in accordance with
regulatory requirements.
    In September 2007, the Company successfully completed its 2006-2007 share
purchase program. A total of 5.8 million shares were purchased at an average
net cost of $34.43 per share as part of this previous share repurchase

    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
Company's 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 March 9, 2007, 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, 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

    Tim Hortons Inc. Overview
    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 September 30, 2007, Tim Hortons had 3,110 system-wide
restaurants, including 2,758 in Canada and 352 in the United States. More
information about the Company is available at www.timhortons.com.

For further information:

For further information: INVESTORS: Scott Bonikowsky, (905) 339-6186, or
bonikowsky_scott@timhortons.com; MEDIA: Rachel Douglas, (905) 339-6277, or

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