Tim Hortons Inc. confirms $200 million share repurchase program planned to commence in first quarter of 2009

    (All amounts in Canadian dollars)

    OAKVILLE, ON, Feb. 20 /CNW/ - Tim Hortons Inc. (NYSE:   THI, TSX: THI)
today announced it plans to commence its previously announced 12-month share
repurchase program in March 2009, subject to receipt of final regulatory
approval. Commencement of the new program was shifted to the first quarter of
2009 to fully align the Company's capital allocation decisions including
capital expenditures, dividends and share repurchases.
    A notice of intention to make a normal course issuer bid will be filed
with the Toronto Stock Exchange (TSX) for a stock repurchase program
authorizing the repurchase of up to $200 million in common shares, not to
exceed the regulatory maximum of 9,077,438 shares or 5%, of the outstanding
common shares.
    The Company announced earlier today in conjunction with its 2008 fourth
quarter and year end results that it has commenced a feasibility assessment of
various initiatives relating to our corporate structure, with the support of
external advisors, including potentially reorganizing as a Canadian public
company. (See 2008 fourth quarter and year end earnings release for additional
information.) If a subsequent decision is made to proceed with changes to the
Company's corporate structure, timing of share repurchases could be affected,
including potentially deferring future purchases subsequent to the first
quarter until after a transaction is implemented.
    "Tim Hortons is committed to creating value for shareholders. The
Company's continued strong financial position and cash flows were key factors
in the decision to commence the new share repurchase program, which represents
our third $200 million program," said Don Schroeder, president and CEO.
    As a result of fully aligning the timing of the share repurchase program
with annual budget and the capital allocation process, we plan to commence
purchases in March, and, accordingly, shares repurchased in the first quarter
of 2009 will be lower than in the first quarter of 2008. Timing of share
purchases in the program will initially be solely at management's discretion
given regulatory requirements, and market, cost and other considerations,
unlike the previous program which included a 10b5-1 or automatic trading
program at inception.
    Repurchases will be made by Tim Hortons directly, or through one or more
of its direct or indirect subsidiaries or parent organization, on the Toronto
Stock Exchange and/or the New York Stock Exchange, subject to compliance with
applicable regulatory requirements.
    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
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 145,092 shares, representing 25% of the average daily trading
volume on the Toronto Stock Exchange for the Company's shares during the
previous six months excluding purchases made by the Company under its normal
course issuer bid. This limit, for which there are permitted exceptions, is
determined in accordance with regulatory requirements.

    The Company purchased 5,951,995 shares under its 2007-2008 share
repurchase program at an average price of $33.52 per share.  In 2008, the TDL
RSU Plan Trust also purchased 115,947 shares at an average price of $33.16 per
share.  In addition, 6,802 shares were purchased on the open market through an
agent to settle equity compensation awards that were not settled from the
Trust, at an average price of $33.13 per share.

    Safe Harbor Statement
    Certain information in this news release, particularly information
regarding our 2009 performance targets as well as other 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 2007 Annual Report on Form 10-K, filed
February 26, 2008, and in our 2008 Annual Report on Form 10-K to be filed
February 25, 2009, and those risk factors set forth in our Safe Harbor
Statement, 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
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 December 28, 2008, Tim Hortons had 3,437 systemwide
restaurants, including 2,917 in Canada and 520 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
investor_relations@timhortons.com; Media: Diane Slopek-Weber: (905) 339-6229
or slopek-weber@timhortons.com

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