TORONTO, March 26, 2002 - two of the country's most recognizable brands - Esso and Tim Hortons - today announced they are joining forces in a new deal that will see many Esso retail outlets across the country offer Tim Hortons soups and sandwiches as Imperial Oil reinvents its retail offering to offer the best experience to drivers on the move.

Under the terms of the 10-year agreement, up to 300 Esso retail outlets across Canada will start offering the full Tim Hortons menu, including soups and sandwiches, over the next three years. The two companies will also align many of their marketing strategies over the course of the deal. The agreement, which elevates Esso's retail food offering from the current food service standard of coffee and baked goods, is part of Imperial Oil's move towards more complete consumer convenience.

"This alliance is part of Imperial's long term strategic plan to reinvent our convenience retail offering to provide the best experience for drivers on the move," said Simon Smith, vice president, fuels marketing, Imperial Oil. "We no longer see ourselves as just sellers of gasoline who happen to have convenience stores on the property, but rather leading convenience retailers who sell gas."

Smith says the agreement, officially unveiled today at a ribbon-cutting ceremony at a new Esso-Tim Hortons location in Brampton, north of Toronto, will represent as much as ten per cent of Tim Hortons' overall locations in Canada.

"Tim Hortons and Esso were the pioneers in bringing a branded food offering into the Canadian gasoline retail market," said Paul House, President & COO of Tim Hortons, referring to a relationship the two companies began in the early 1990s, when Tim Hortons placed coffee kiosks in numerous Esso sites. "This is an expansion of that relationship that will not only have a positive impact on both companies, but more importantly, will bring added convenience and service to very busy consumers."

For Esso, meeting those ever-changing needs has included millions of dollars of proprietary research to provide products and services to further enhance customers' driving experiences. The result: Esso flagship On the Run locations - bigger, brighter, more colourful open-concept stores that offer a full range of convenience products, and now a full menu at many locations.

"Our research tells us that the Canadian retail gasoline convenience industry is anywhere between three and five years behind its American counterpart," said Smith. "Already in the U.S., gas companies like Imperial Oil are offering 'cafés' inside their convenience stores and American consumers are demonstrating the success of this strategy. By teaming up with a quality branded food offer like Tim Hortons, we're convinced Canadian consumers will start to see Esso retail outlets as a place where you can get good, quality food. With our alliance, we not only expect to attract more drivers to our retail locations, but walk-in customers as well."

Imperial Oil is Canada's largest gasoline retailer, with more than 2,200 Esso retail outlets coast-to-coast. Tim Hortons is one of North America's largest coffee and fresh baked goods chains, with more than 2,000 stores across Canada.

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