Tim Hortons Continues Momentum with Solid Results in Canada and U.S.

OAKVILLE, Ontario -- Tim Hortons Inc. (NYSE:THI) (TSX:THI) today announced preliminary same-store sales increases of 5.9% at Tim Hortons[R] restaurants in Canada and 9.2% at restaurants in the United States for the third quarter, which ended on Sunday, October 1.

Third-Quarter Same-Store Sales Summary

                    3Q 2006  3Q 2005  2006 YTD









Tim Hortons Canada  5.9%     3.6%     6.8%









Tim Hortons U.S.    9.2%     4.7%     9.1%

Note: As of July 2, 2006, 99% of the Company's stores in Canada -- and 79% of the stores in the U.S. -- were franchised.

Tim Hortons continued its solid sales performance, driven by a strong promotional calendar. In June and July, Tim Hortons introduced its chunky chicken salad wrap in Canada and the U.S., respectively. Iced cappuccino with flavour shots of butter caramel, French vanilla, hazelnut or raspberry, were the feature promotions in July and August. Tim Hortons also promoted a 12-grain bagel in Canada in August, and the toasted chicken club sandwich in both countries in September.

"We are extremely pleased to see our strong 2006 sales momentum continue during the third quarter in both Canada and the U.S.," said Chief Executive Officer and President Paul House. "Both our third-quarter and year-to-date results are above our expectations of 4.0% to 5.0% in Canada and 6.0% to 7.0% in the United States."

In the fourth quarter, Tim Hortons will roll out its new breakfast sandwich to all stores in Canada. All U.S. stores had previously started offering the hot breakfast sandwich in the first quarter of 2006. Tim Hortons will again promote the hot breakfast sandwich in both countries in the fourth quarter, along with holiday merchandise.

Wendy's completes distribution of Tim Hortons shares

As announced on September 29, Wendy's International, Inc. has completed the distribution of the 160.0 million shares of Tim Hortons that it previously owned. The shares represented the remaining 82.75% stake in Tim Hortons that the Company had owned subsequent to Tim Hortons March initial public offering.

Tim Hortons to release third-quarter earnings October 26

Tim Hortons will release third-quarter earnings at approximately 2 p.m. on Thursday, October 26 and host a conference call beginning at 3 p.m. (Eastern) the same day. Investors and the public may participate in the conference call in either one of the following ways:

* Phone Call: The dial-in number is 877-572-6014 (Canada and U.S.) or 706-679-4852 (International). No need to register in advance.

* Simultaneous Web Cast: Available at www.timhortons-invest.com. The call will also be archived at that site.

Monthly Same-Store Sales Summary for July, August, and September

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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 http://www.timhortons.com/safeharbor.html.

Tim Hortons Inc. overview

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, flavored 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.