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Do I need to have Facebook’s Timeline to use Cover Photo Maker?

No, the app works fine even if you do not (yet) have Facebook’s Timeline.  The Cover Photos can be saved to your Camera Roll, emailed or saved in a Facebook Photo Album.  You can use the Cover Photos you created for whatever you want, but the intended purpose for them was to be used on your Timeline’s Cover.

You can learn more about Facebook’s Timeline, including switching to it here.