Canadian Tire Creates New Financial Choice For Canadians

High Interest Savings Accounts, Mortgages and Guaranteed Investment Certificates offered in a two city pilot

(Thursday, October 12, 2006) - Canadian Tire Financial Services Limited, a
wholly-owned subsidiary of Canadian Tire Corporation, Limited (CTC, CTC.a)
today launched a limited pilot of new retail banking products including High
Interest Savings accounts, variable and fixed-rate Mortgages and Guaranteed
Investment Certificates.
The pilot markets selected for the product launch are Calgary, Alberta
and Kitchener-Waterloo, Ontario. Multiple channels will be used to promote the
products including television, outdoor billboards, online, Canadian Tire
flyers, direct mail and in-store promotion.
"The pilot we have launched today will explore the potential to leverage
our strengths and grow our business by deepening our customer relationships
with new value-added products. Our pilot has been structured in a
comprehensive manner but as we always do when introducing new products to the
marketplace, we will test and learn over a period of time in a measured
fashion, potentially adding additional financial products in the first half of
2007 as part of the pilot," said Marco Marrone, president, Canadian Tire
Financial Services.
"Canadian Tire has unique and privileged relationships with consumers
across Canada. In particular, our research demonstrates that we enjoy high
levels of confidence and trust from the customers of our financial services
products. Canadian Tire Financial Services currently has a relationship with
approximately four million customers through our Canadian Tire MasterCard(R)
franchise and our insurance and personal loan products. Our research indicates
a strong opportunity for us to expand our financial services portfolio and our
customer base," added Marrone.
Proprietary company research demonstrates Canadians consistently rate
Canadian Tire higher than traditional financial services organizations across
a range of attributes including friendliness, trustworthiness and caring. The
Company's new products will feature the brand positioning: Be nice to your
money. Great rates. No monthly fees. And bonus electronic Canadian Tire
'money' gift cards.
The new financial products will be provided by Canadian Tire Bank, a
wholly-owned subsidiary of Canadian Tire Financial Services (CTFS).
"We are uniquely positioned to meet targeted financial needs of Canadians
because of our retail scale, customer relationships, credit management
capabilities and trust in our brand. We also know that Canadians are
pre-disposed to alternative options for their financial services and products,
and believe there is a significant potential market opportunity to explore,"
said Marrone.
Canadian Tire Financial Services' earnings growth over the last half of
the year will be impacted by expenses of approximately $10.2 million to
support the retail banking initiative, the majority of which will be incurred
in the fourth quarter. Retail banking capital and expenses have been
incorporated in the Company's 2006 capital plan and earnings guidance.

Canadian Tire Corporation, Limited (TSX: CTC, CTC.a), operates an
inter-related network of businesses engaged in retail, financial services and
petroleum. The Company operates more than 1,100 stores, gas bars and car
washes, including the country's most-shopped general merchandise retailer.
Canadian Tire Financial Services manages approximately 4 million Canadian Tire
MasterCard(R) accounts and markets related financial products and services for
retail and petroleum customers. More than 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: Scott Bonikowsky, Divisional VP, Corporate
Communication & Investor Relations, (416) 480-8570, bonikowsky@cantire.com

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