Tim Hortons Continues 2006 Sales Momentum with Solid Second-Quarter Results in Canada and U.S.

Tim Hortons Inc. (TSX/NYSE: THI) today announcedpreliminary same-store sales increases of 6.0% to 6.1% at restaurantsin Canada and 8.1% to 8.3% at restaurants in the United States for thesecond quarter, which ended on Sunday, July 2, 2006.
Second Quarter Same-Store Sales Summary

2Q 2006 2Q 2005 2006 YTD
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Tim Hortons Canada(a) 6.0% to 6.1% 5.6% 7.3% to 7.4%
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Tim Hortons U.S.(a) 8.1% to 8.3% 9.1% 8.9% to 9.0%
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(a) As of April 2, 2006, 99% of the Company's stores in Canada -- and
78% of the stores in the U.S. -- were franchised.

"We are extremely pleased to see our strong 2006 sales momentumcontinue during the second quarter in both Canada and the U.S.,especially against solid 2005 performance," said Chief ExecutiveOfficer and President Paul House. "Both our second-quarter andyear-to-date results are above our expectations of 4.0 to 5.0% inCanada and 6.0% to 7.0% in the United States."

In April Tim Hortons(R) promoted its new caramel-themed bakedgoods, including caramel-chocolate donuts, caramel apple fritters,caramel streusel cakes and caramel turnovers. In May the Companypromoted iced cappuccino with "flavour shots" of butter caramel,French vanilla, hazelnut or raspberry. These flavour shots can also beadded to other beverages. Through May and June, Tim Hortons introduceda new chunky chicken salad wrap, and later in June promotedstrawberry-themed desserts, featuring a strawberry tart.

On "Camp Day," June 7, the Company and its store owners raisedC$7.2 million (US$6.5 million) through coffee sales and donations forthe Tim Horton Children's Foundation. This exceeded last year's totalof C$6.4 million. Due in large part to the funds raised on Camp Day,more than 11,000 deserving children from Canada and the U.S. willattend one of six Children's Foundation camps this year - all expensespaid.

Tim Hortons shares to be spun off to existing Wendy's shareholdersby October 1

Wendy's International, Inc. (NYSE: WEN) recently announced thatits Board of Directors has confirmed its intent to spin off the 160.0million shares of Tim Hortons that it currently owns. The sharesrepresent an 82.75% ownership stake in Tim Hortons. Wendy's is nowtargeting Oct. 1, 2006, to complete the Tim Hortons spin-off, assumingit has received from the IRS a ruling on the tax-free status of thedistribution by that time.

Tim Hortons to release second-quarter earnings July 27

Tim Hortons will release second-quarter earnings at 1 p.m. onThursday, July 27, and host a conference call beginning at 3:00 p.m.(Eastern) the same day. Investors and the public may participate inthe conference call in either one of the following ways:

-- Phone Call: The dial-in number is (877) 572-6014 (Canada and U.S.) or (706) 679-4852 (International). No need to register in advance.

-- Simultaneous Web Cast: Available at www.timhortons-invest.com and www.wendys-invest.com. The call will also be archived at that site.
Monthly Same-Store Sales Summary for April(a), May, and June

April April May May June June
2006 2005 2006 2005 2006 2005
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Tim Hortons Canada 5.0% 6.5% 6.4% 6.3% 7.0% to 7.3% 3.7%
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Tim Hortons U.S. 5.6% 11.5% 10.0% 9.0% 9.4% to 9.7% 6.2%
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(a) April sales results were impacted by an Easter shift, as the
holiday was in the first quarter a year ago, but was in the second
quarter this year.

Safe Harbor statement

Certain information in this news release, particularly informationregarding future economic performance and finances, and plans,expectations and objectives of management, is forward-looking. Factorsset forth in the Company's Safe Harbor Statement under the PrivateSecurities Litigation Reform Act of 1995, in addition to otherpossible factors not listed, could affect the Company's actual resultsand cause such results to differ materially from those expressed inforward-looking statements. Please review the Company's Safe HarborStatement at http://www.timhortons.com/safeharbor.html.

Tim Hortons Inc. overview

Tim Hortons Inc. is Canada's largest quick service restaurantchain. Founded in 1964 as a coffee and donut shop, Tim Hortons hasevolved to meet consumer tastes, with a menu that now includes premiumcoffee, flavoured cappuccinos, specialty teas, home-style soups, freshsandwiches and fresh baked goods. As of April 2, 2006, Tim Hortonssystem-wide restaurants numbered 2,611 in Canada and 292 in the UnitedStates. More information about the Company is available atwww.timhortons.com.