Tim Hortons Inc. increases quarterly dividend by 23.8% and declares a dividend of $0.26 per common share

Tim Hortons Inc. increases quarterly dividend by 23.8% and declares a dividend
                          of $0.26 per common share

PR Newswire

OAKVILLE, ON, Feb. 21, 2013

(All amounts in Canadian dollars)

OAKVILLE, ON, Feb. 21, 2013 /PRNewswire/ - Tim Hortons Inc. (TSX: THI) (NYSE:
THI) today announced that its Board of Directors has approved a higher
targeted annual dividend payout range of 35% to 40% of prior year, normalized
net income attributable to Tim Hortons Inc. The previous targeted payout
range was 30% to 35% of prior year, normalized net income attributable to Tim
Hortons Inc.

Coinciding with this change, the Board has approved a 23.8% increase in the
quarterly dividend. The Board has declared a dividend at the new payout rate
of $0.26 per common share, payable on March 19^th, 2013, to shareholders of
record as of March 4^th, 2013.

"Our strong cash flows have enabled us to increase our dividend for the sixth
consecutive year and increase the target payout range, thereby returning more
capital to our investors," said Cynthia Devine, Chief Financial Officer.

Dividends are declared and paid in Canadian dollars to all shareholders with
Canadian resident addresses. For U.S. shareholders, the dividends will be
converted to, and paid in, U.S. dollars based on prevailing exchange rates at
the time of conversion by Tim Hortons for registered shareholders and by
Clearing and Depository Services Inc. for beneficial shareholders. The
payment of future dividends and the targeted payout range remain at the
discretion of the Board of Directors.

Tim Hortons Inc. Overview

Tim Hortons is one of the largest publicly-traded restaurant chains 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,
espresso-based hot and cold specialty drinks including lattes, cappuccinos and
espresso shots, specialty teas, fruit smoothies, home-style soups, fresh
Panini and classic sandwiches, wraps, hot breakfast sandwiches and fresh baked
goods, including our trademark donuts. As of December 30^th, 2012, Tim Hortons
had 4,264 systemwide restaurants, including 3,436 in Canada, 804 in the United
States and 24 in the Gulf Cooperation Council. More information about the
Company is available at www.timhortons.com.

SOURCE Tim Hortons Inc.

Contact:

Scott Bonikowsky, (905) 339-6186 orinvestor_relations@timhortons.com