New 10-year agreement to add 175 convenient locations across Canada

OAKVILLE, ON. - October 4, 2010 - Finding a local Tim Hortons in Canada will become even easier following a renewed agreement between Canada's favorite restaurant chain and Imperial Oil. The two companies have committed to adding 175 Tim Hortons locations at Esso sites nationwide over the next 10 years, bringing value and convenience to Canadians on the go.

"Esso is Tim Hortons' largest non-traditional association and we couldn't be happier to announce this renewed agreement," said Roland Walton, Chief Operations Officer, Tim Hortons.  "This speaks to the successful relationship we've shared over the years and the synergies between the two brands. We both offer value, convenience, quick service and more options for busy Canadians."

Tim Hortons began opening kiosks inside Esso service stations in 1994. Since then, Tim Hortons has expanded to more than 350 locations.

"This is a special alliance for Imperial Oil and it's exciting we will be working closely for another 10 years with Tim Hortons, the number one quick service restaurant brand in the country," said Simon Smith, vice-president and general manager fuels marketing, Imperial Oil. "For Esso customers, it means there will be a growing number of On the Run stores where you can grab a coffee and muffin on your way to work, or stop in during the day and pick up a quick lunch."

Tim Hortons Inc. Overview

Tim Hortons is the fourth largest publicly-traded quick service 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 July 4th, 2010, Tim Hortons had 3,627 systemwide restaurants, including 3,040 in Canada and 587 in the United States. More information about the Company is available at http://www.timhortons.com/

Safe Harbor Statement

Certain information in this news release, particularly information regarding future economic performance, finances, and plans, expectations and objectives of management, including as they relate to the Company's progress on growth initiatives and ability to drive shareholder value, the intention to close a transaction for the sale of the Company's 50% interest in a joint venture bakery, the evaluation of possible options for the use of the net proceeds from that sale transaction and related supply chain matters 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

Imperial Oil

Imperial Oil is one of Canada's largest corporations and a leading member of the country's petroleum industry. It is one of the country's largest producers of crude oil and natural gas, is the largest petroleum refiner, and has a leading market share in petroleum products sold through a coast-to-coast supply network that includes about 1,850 service stations.

For Further information

Media:  Alexandra Cygal, Tim Hortons (905) 339-5960 or cygal_alexandra@timhortons.com;
Jon Harding, Imperial Oil (403) 237-2710

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