Canadian Tire Reaches Agreement To Sell A Non-strategic Real Estate Asset For $149.7 Million

(Monday, October 30, 2006) - Canadian Tire Corporation, Limited (CTC, CTC.a)
today announced that it has reached agreement on the sale of approximately
40-acres of surplus lands in the Leslie and Sheppard area of Toronto to
Concord Adex Investments Limited of Vancouver for total proceeds of $149.7
million. In addition to the purchase price, the purchaser will make
significant infrastructure investments in the local road network and toward
the creation of a community park.
The lands are located at the site of Canadian Tire's former warehouse
property at Sheppard Avenue and Leslie Street in the North York region of
Toronto. The site has been zoned for four million square feet of residential
use, representing approximately 4,000 residential units. Canadian Tire will
retain approximately three acres of land for future use and will also retain
the existing Canadian Tire store site, which also includes a Mark's Work
Wearhouse store.
"By selling this property in Toronto we are continuing to surface value
from our surplus real estate assets that no longer hold strategic value, a key
imperative of our current strategic plan," said Tom Gauld, president and CEO,
Canadian Tire Corporation, Limited.
The structure of the transaction includes payment terms over 10 years or
faster at the discretion of Concord Adex. The agreement follows a North
American-wide competitive bid process. The transaction structure and purchase
price are designed to maximize the value of the site, reflecting the
significant upfront infrastructure investment required by the purchaser as
well as the phased build-out schedule required due to the size of the
property.
Scheduled to close by the end of November 2006, the transaction will
result in pre-tax earnings of approximately $121 million. A gain of
approximately $51 million will be recorded on closing, with the remaining
$70 million recorded as imputed interest over the life of the agreement. The
gain of $51 million will be treated as a non-operating item and as such this
transaction will not change the Company's existing earnings guidance for 2006
of $4.25 to $4.40 per share excluding non-operating items.
Canadian Tire owns about 70 percent of its Canadian Tire Retail store
network and leases the majority of its other retail properties. Canadian Tire
views its Canadian Tire Retail store network as strategic assets due to the
important flexibility real estate ownership provides for its continued store
transformation activities. This transaction is part of Canadian Tire's stated
strategy to monetize non-strategic real estate assets, which also includes the
ongoing disposition of surplus real estate created by the store network
transformation activities. Most recently, the Company announced a
sale-leaseback transaction for two distribution centres in the first quarter
of 2006, yielding a $50 million gain. In 2005, the Company undertook a
sale-leaseback transaction of a Canadian Tire- anchored multi-tenant urban
property in Vancouver and sold a property zoned for residential use in
Toronto.

Canadian Tire Corporation, Limited (TSX: CTC, CTC.a), Canada's
most-shopped general merchandise retailer, operates more than 1,100 stores,
gas bars and car washes in an inter-related network of businesses engaged in
retail, financial services and petroleum. Canadian Tire Retail, with
464 stores operated by Associate Dealers across Canada offers a unique mix of
products and services through three specialty categories in which the
organization is the market leader - Automotive, Sports and Leisure, and Home
Products. www.canadiantire.ca offers Canadians the opportunity to shop online.
PartSource is an automotive parts specialty chain with 59 stores designed to
meet the needs of purchasers of automotive parts - professional automotive
installers and serious do-it-yourselfers. Canadian Tire Petroleum is one of
the country's largest and most productive independent retailers of gasoline,
operating 262 gas bars, 248 convenience stores and kiosks, and 73 car washes.
Mark's Work Wearhouse is one of the country's leading apparel retailers
operating 330 stores in Canada. Under the Clothes that Work(TM) marketing
strategy, Mark's sells apparel and footwear in work, work-related, casual and
active-wear categories, as well as health-care and business-to-business
apparel. www.marks.com offers Canadians the opportunity to shop online.
Canadian Tire Financial Services manages over 4 million Canadian Tire
MasterCard accounts and markets related financial products and services for
retail and petroleum customers. Canadians can also access Financial Services
online at www.ctfs.com. Over 50,000 Canadians work across Canadian Tire's
organization from coast-to-coast in the enterprise's retail, financial
services, and petroleum businesses.




For further information: Media: Caroline Casselman, Director, Community
& Public Affairs, (416) 480-8159, caroline.casselman@cantire.com; Investors:
Michelle Dodokin, Director, Investor Relations, (416) 480-3070,
michelle.dodokin@cantire.com

For More Infromation Please contact:
Caroline Casselman
Director, Community & Public Affairs
Phone: (416) 480-8159
Email: caroline.casselman@cantire.com

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