Oakville, Ontario (August 31, 2006) - Tim Hortons, Inc. (NYSE/TSX: THI) today announced that its Board of Directors has approved a share repurchase program authorizing the repurchase of up to C$ 200 million, not to exceed 5% of its current outstanding shares of common stock, subject to regulatory approval.

The program is expected to commence following the distribution by Wendy's International, Inc. of the shares of Tim Hortons common stock currently owned by Wendy's, with such repurchases being made at management's discretion from time to time depending upon market conditions and compliance with applicable regulatory requirements. Tim Hortons may make such repurchases on either of the New York Stock Exchange (NYSE) or the Toronto Stock Exchange (TSX).

The decision to approve the repurchase program was made based on Tim Hortons strong balance sheet and steady cash flow projections.

"We believe our stock represents a good value, and this share repurchase program -- coupled with our dividend announced in July -- underscores Tim Hortons financial strength and commitment to enhancing total returns for our shareholders," said Paul House, Chief Executive Officer and President.

The program is expected to be in place for 12 months following the distribution of the Tim Hortons shares by Wendy's, unless either the C$200 million maximum or the 5% of outstanding shares limit is reached prior to the expiration of such 12-month period.

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, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company's Safe Harbor Statement at www.timhortons.com/safeharbor.html.

Tim Hortons Inc. overview

Tor#: 1793670.3 Tim Hortons Inc. is Canada's largest quick service restaurant chain. Founded in 1964 as a coffee and donut shop, Tim Hortons has evolved to meet consumer tastes, with a menu that now includes premium coffee, flavoured cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh baked goods. As of July 2, 2006, Tim Hortons system-wide restaurants numbered 2,625 in Canada and 297 in the United States. More information about the Company is available at www.timhortons.com.

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