Really, really, really, important news for Timaholics

ABRIDGED NEWS RELEASE

MASTERCARD CANADA, INC.

**************************** Tim Hortons to introduce MasterCard payment in Canada Implementation to include MasterCard PayPass(TM) contactless payment

TORONTO - (June 29) - For the first time, Tim Hortons customers in Canada will be able to pay for their purchases with their MasterCard cards thanks to an agreement announced today between MasterCard Worldwide and Tim Hortons.

Under the agreement, Tim Hortons will accept MasterCard at participating counter and drive-thru locations across Canada, and for a limited period, MasterCard will be the exclusive credit card accepted at Tim Hortons.

The deal includes deployment of MasterCard PayPass contactless technology.

Approximately 500 Tim Hortons locations are currently installed with MasterCard capability and more locations are being added throughout the summer. "Adding the option of MasterCard payment gives our customers more choice and flexibility," said Paul House, chairman and CEO, Tim Hortons.

"It's a great way to enhance our customer experience," House said. MasterCard Canada has been expanding card payment capability into categories of merchants that have not traditionally accepted credit card payment before - such as convenience stores, parking lots, and quick-service restaurants.

MasterCard is facilitating payment card acceptance in quick service environments with its exclusive quick payment service (QPS) and MasterCard PayPass programs. "We are seeing Canadians use their MasterCard cards for more daily purchases," said Kevin Stanton, president, MasterCard Canada.

"Bringing MasterCard payment to Tim Hortons is a big step in meeting that demand," Stanton said.

"Without a doubt, the partnership of the two great brands is truly priceless," he said.

PHOTO CAPTION: Kevin Stanton, president, MasterCard Canada (right) buys Paul House, chairman and CEO, Tim Hortons a coffee using his MasterCard PayPass contactless card.

MasterCard quick payment service (QPS)

More than 36,000 Canadian quick service merchants are already using MasterCard QPS, which allows designated categories of merchants to process small value transactions without requiring a receipt or signature (although the consumer can always request a receipt), thus making the payment processing more efficient than handling cash. "With MasterCard quick payment service, the card is presented, swiped and processed immediately," said Stanton.

"It marries payment convenience and speed while retaining security and fraud protections for the cardholder and merchant."

MasterCard PayPass

MasterCard PayPass uses radio frequency technology to transmit payment details wirelessly between the PayPass device and the merchant's terminal.

The transaction is then processed through the MasterCard network for clearing and settlement.

PayPass cards can also be used in the traditional manner anywhere MasterCard is accepted around the world. MasterCard PayPass is ideal for traditional cash-heavy environments where speed is essential, and has led the way in bringing contactless technology to consumer categories where quick service is essential.

There are nearly 13 million PayPass cards issued globally.

The introduction of MasterCard acceptance at Tim Hortons will be supported by advertising and in-store signage and communications.

About Tim Hortons

Tim Hortons is Canada's largest quick service restaurant chain.

Founded in 1964 as a coffee and donut shop, Tim Hortons has evolved to meet consumer tastes, with a menu that now includes premium coffee, flavored cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh baked goods.

As of April 1, 2007, Tim Hortons system-wide restaurants numbered 2,724 in Canada and 340 in the United States.

More information about the company is available at TimHortons.com.

****************************