TORONTO, Feb. 8 /CNW/ - The Board of Directors of Canadian Tire
Corporation, Limited (CTC, CTC.a) today approved an increase in the 2007
quarterly dividend payments from $0.165 per share to $0.185 per share, an
annualized increase of 12 percent. The total annualized dividend payment will
rise from $0.66 per share to $0.74 per share. Declaration of the increased
dividend is expected in March 2007 for payment on June 1st, 2007 to
shareholders of record as of April 30th, 2007.
    Canadian Tire's policy is to maintain dividend payments equal to
approximately 15 to 20 percent of the prior year's normalized basic net
earnings per share, after giving consideration to the period end cash
position, future cash flow requirements and investment opportunities.
Normalized net earnings per share for this purpose exclude gains and losses on
the sale of credit card and loans receivable and non-recurring items but
include gains and losses on the ordinary course disposition of property and
equipment.

    Canadian Tire Corporation, Limited (TSX: CTC, CTC.a), 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, Canada's most shopped general merchandise retailer, with 468 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 63 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 260 gas bars, 251 convenience stores and kiosks, and 74 car washes.
Mark's Work Wearhouse is one of the country's leading apparel retailers
operating 339 stores in Canada. Under the Clothes that Work™ 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.