Tim Hortons: to buy back shares for 400 million CAD

Oakville / CA. (thi) Tim Hortons Inc. (THI) announced the Company has obtained regulatory approval from the Toronto Stock Exchange (TSX) to amend its 2010 share repurchase program to increase the maximum number of shares that may be purchased under the program effective November 16th, 2010.

The Company plans to repurchase shares in order to distribute up to 400 million CAD (just under 290 million EUR on November 16, 2010) of the after-tax cash proceeds from its recently completed sale of its 50 percent interest in Maidstone Bakeries. Under the amended normal course issuer bid, which will terminate March 02nd, 2011, the Company plans to spend the 200 million CAD originally contemplated in the 2010 normal course issuer bid, and additionally, up to 200 million CAD from proceeds from the Maidstone Bakeries transaction. The final amount is dependent upon average daily trading limits and share price.

It is the Company´s intention to distribute the remaining amount beyond the termination of the amended 2010 program through an additional repurchase program in 2011, subject to receipt of regulatory approval and in parallel with our annual capital allocation process. Net proceeds from the sale are expected to be distributed in their entirety by the end of the third quarter of 2011.

Under the amended 2010 share repurchase program, the maximum number of common shares that may be repurchased is the regulatory maximum of 17’531’446 (representing ten percent of the Company´s public float as of February 19, 2010 as defined under TSX rules). The amended 2010 share repurchase program is also subject to the maximum of 400 million CAD set by the Company. Prior to the amendment, the regulatory maximum number of shares that could be repurchased was up to 8’817’291, representing five percent of the outstanding common shares as of February 19th, 2010, subject to a maximum amount set by the Company of 200 million CAD.

The Company´s common shares have been, and will continue to be, purchased through a combination of an automatic trading plan as well as at Management´s discretion in compliance with regulatory requirements, and given market, cost and other considerations. Repurchases will be made on the TSX, the New York Stock Exchange, and/or other marketplaces, 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 share 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 share repurchase program will be cancelled.

The maximum number of shares that may be purchased during any trading day under the amended program remains at 25 percent of the average daily trading volume on the TSX, based on the six completed calendar months ended January 31, 2010, for a daily total of 125’025 common shares. This limit, for which there are permitted exceptions, is determined in accordance with regulatory requirements. Tim Hortons has purchased 3’198’043 million shares up to October 29th, 2010, at an average price of 35,18 CAD under the 2010 repurchase program that commenced March 03rd, 2010.