Tim Hortons Inc. to purchase up to $400 million of outstanding common shares using proceeds from sale of the Company's Maidstone Bakeries joint venture interest

Regulatory approval received to amend and increase 2010 share repurchase program

(All amounts in Canadian dollars)

OAKVILLE, ON, Nov. 10 /PRNewswire-FirstCall/ - Tim Hortons Inc. (TSX: THI, NYSE: THI) today 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 of the after-tax cash proceeds from its recently completed sale of its 50% interest in Maidstone Bakeries. Under the amended normal course issuer bid, which will terminate March 2nd, 2011, the Company plans to spend the $200 million originally contemplated in the 2010 normal course issuer bid, and additionally, up to $200 million 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 10% 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 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 5% of the outstanding common shares as of February 19th, 2010, subject to a maximum amount set by the Company of $200 million.

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% 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 under the 2010 repurchase program that commenced March 3rd, 2010.

Safe Harbor Statement

Certain information in this news release, particularly information regarding expectations and objectives of management, including as they relate to the Company's intentions regarding the number of shares that may be purchased, or the amount that will be spent to purchase shares under the share repurchase programs, constitutes forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We refer to all of these as forward-looking statements.

Various factors including competition in the quick service segment of the food service industry, general economic conditions and others described as "risk factors" in the Company's 2009 Annual Report on Form 10-K, filed March 4th, 2010 and the Quarterly Report on Form 10-Q filed August 12th, 2010 with the U.S. Securities and Exchange Commission and Canadian Securities Administrators, 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. Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about: the absence of a material increase in competition within the quick service restaurant segment of the food service industry; the absence of an adverse event or condition that damages our strong brand position and reputation; continuing positive working relationships with the majority of the Company's franchisees; there being no significant change in the Company's ability to comply with current or future regulatory requirements; the absence of any material adverse effects arising as a result of litigation; and general worldwide economic conditions.

We are presenting this information for the purpose of informing you of management's current expectations regarding these matters, and this information may not be appropriate for any other purpose. We assume no obligation to update or alter any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. Please review the Company's Safe Harbor Statement at www.timhortons.com/en/about/safeharbor.html.

Tim Hortons Inc. Overview

Tim Hortons is the fourth largest publicly-traded restaurant chain in North America based on market capitalization, and the largest in Canada. Operating in the quick service segment of the restaurant industry, Tim Hortons appeals to a broad range of consumer tastes, with a menu that includes premium coffee, flavored cappuccinos, specialty teas, home-style soups, fresh sandwiches, wraps, hot breakfast sandwiches and fresh baked goods, including our trademark donuts. As of October 3rd, 2010, Tim Hortons had 3,703 systemwide restaurants, including 3,082 in Canada and 621 in the United States. More information about the Company is available at www.timhortons.com.

SOURCE Tim Hortons Inc.