TMX group

OAKVILLE, ON, Oct. 27 /CNW/ - Tim Hortons Inc. (NYSE/TSX: THI) today
announced that a notice of intention to make a normal course issuer bid has
been filed and has received approval from the Toronto Stock Exchange for the
previously announced stock repurchase program authorizing the repurchase of up
to 9,665,148, or 5% of its outstanding shares of common stock. As of October
25, 2006, there were 193,302,977 shares outstanding. The amount to be spent
under the repurchase program is not expected to exceed C$200 million. Tim
Hortons will begin implementation of the program on November 1, 2006. The
repurchases will be made on the TSX and/or the NYSE, subject to compliance
with applicable regulatory requirements.
As part of the stock repurchase program, Tim Hortons also announced that
it will 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 company restrictions. Purchases will be based
upon the parameters of the Rule 10b5-1 plan. In addition to repurchases made
pursuant to the Rule 10b5-1 plan, Tim Hortons may also make repurchases at
management's discretion under its stock repurchase program from time to time,
subject to market conditions, stock prices, its cash position and compliance
with regulatory requirements.
The decision to implement the repurchase program was made based on Tim
Hortons strong balance sheet, steady cash flow projections and company focus
on returning value to shareholders.
The program was approved by the board of directors and previously
announced on August 31, 2006, and is expected to be in place until
September 28, 2007. The program will be terminated earlier if the limit of 5%
of outstanding shares is reached, or more than C$200 million aggregate
consideration is paid. There can be no assurance as to the precise number of
shares that will be repurchased under the stock repurchase program, and Tim
Hortons may discontinue purchases at any time, subject to compliance with
applicable regulatory requirements. Shares purchased pursuant to the stock
repurchase program will either be cancelled or held in Tim Hortons treasury.
Tim Hortons previously purchased a total of approximately 195,000 shares
of its common stock on May 1, 2006 and August 15, 2006 for an average price of
C$28.34. These purchases were made through the facilities of the TSX on behalf
of, and credited directly to the account of, the employees entitled to these
shares under the Tim Hortons 2006 Stock Incentive Plan.

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

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 October 1, 2006, Tim Hortons system-wide restaurants
numbered 2,637 in Canada and 305 in the United States. More information about
the Company is available at www.timhortons.com.