Jefferies

Press Release

FOR IMMEDIATE RELEASE
Jefferies Agrees to Acquire Hoare Govett from the Royal Bank of Scotland

NEW YORK and LONDON, February 1, 2012 - Jefferies announced today that it has agreed to acquire Hoare Govett and employ certain other professionals from The Royal Bank of Scotland Group plc.

With a history of serving clients for over 100 years, Hoare Govett is one of the UK’s most prominent corporate brokers. The acquisition includes the entire senior Hoare Govett corporate broking team, as well as certain other corporate broking, equity research, sales, trading and capital markets professionals necessary to continue to serve the needs of Hoare Govett’s large base of retained clients. In total, approximately 50 professionals will join Jefferies’ London office, including all current Hoare Govett Managing Directors. The acquired business will operate as Jefferies Hoare Govett.

In a joint statement, Richard B. Handler, Chairman and Chief Executive Officer of Jefferies, and Brian P. Friedman, Chairman of the Executive Committee of Jefferies, commented, “Our absorbing of Hoare Govett provides Jefferies with an exceptional opportunity to continue our growth in corporate broking and significantly expand the capabilities and reach of our established European Investment Banking and Equities businesses. Hoare Govett’s relationships and experience, combined with Jefferies’ sector and product expertise and hands-on approach, will enable us to provide the full benefits of the Jefferies global platform to our new clients. Combining one of the strongest M&A franchises on Wall Street, a robust lending and leveraged finance business, and a deep sector-focused coverage model with global distribution, Jefferies is uniquely positioned to efficiently serve our existing and new corporate clients with a full range of investment banking capabilities globally.”

David Weaver, President of Jefferies International Limited, Dominic Lester and Peter Bacchus, Joint Heads of European Investment Banking, added, “Hoare Govett is one of the oldest and most distinguished franchises in corporate broking. Joining forces affirms Jefferies' deep and long-term commitment to serving UK corporate clients. We anticipate a seamless transition and integration for our new clients into Jefferies' global platform, and look forward to welcoming our new employee-partners to Jefferies.”

Jefferies Group, Inc. (NYSE: JEF) is the global investment banking firm focused on serving clients for nearly 50 years. The firm is a leader in providing insight, expertise and execution to investors, companies and governments, and provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income and commodities, as well as offers select asset and wealth management strategies, in the U.S., Europe and Asia.

For further information, please contact:

Richard Khaleel, Jefferies, +1 212 284 2556, rkhaleel@jefferies.com
Sara-Louise Boyes, Jefferies, +44 (0)20 7029 8022, sboyes@jefferies.com