FOR IMMEDIATE RELEASE

Jefferies Expands Energy Practice in Equity Research; Sanjay Ambani to Cover the Container and International Dry Bulk Industries

NEW YORK--(BUSINESS WIRE)--May 17, 2005--Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of Sanjay R. Ambani as a Senior Vice President and Senior Equity Research Analyst. He will cover container and international dry bulk companies as part of the firm's maritime group research practice.

Jefferies' maritime group is headed by Magnus Fyhr, a Managing Director and Senior Equity Analyst and includes coverage of global tanker, container, and wet and dry bulk companies. Jefferies' energy research team is now comprised of seven senior analysts covering oil and gas exploration and production, oil and gas services, drilling, refining and marketing, and electric utilities.

Jefferies is a leading provider of research and capital markets capabilities to growing and mid-sized energy companies and their investors. The firm's total commitment to the energy sector includes seven senior equity research analysts, four securities traders, and more than 75 investment banking professionals, including those added in the firm's February 2005 acquisition of global oil and gas adviser Randall & Dewey.

"Sanjay Ambani, with his extensive working experience in the dry bulk industry, is an ideal addition to our research practice in the maritime industry," commented Steven R. Black, Director of Equity Research at Jefferies. "We welcome his insight and perspective as an industry veteran and believe he will significantly enhance the firm's coverage of the energy sector."

"I am excited about the opportunity to be part of Jefferies' highly respected energy team," said Mr. Ambani. "I plan to maximize my experience and relationships in the dry bulk industry to generate quality investment ideas for Jefferies' institutional client base."

Jefferies' equity research effort has recently received key industry accolades, ranking second in The Wall Street Journal Best on the Street 2005 Analysts Survey with a total of eight awards, and being ranked by StarMine among the Top 10 most award-winning brokers for 2004 with eight analyst honors. In total, Jefferies and its affiliates now have more than 100 research professionals in the U.S. and Europe covering over 1,000 companies in the areas of aerospace and defense, business, financial, knowledge and IT services, consumer, energy, gaming, healthcare, industrials, media and entertainment, shipping, technology, and telecommunications.

With more than eleven years of management and consulting experience in the dry bulk industry in the U.S. and Asia, Mr. Ambani brings a unique perspective to this industry. He is often featured in international publications and speaks regularly at industry conferences. Most recently, Mr. Ambani worked as a structured finance litigation consultant for Resources Connection, formerly a division of Deloitte & Touche. Previously, he served as CFO for ETH Inc., a start-up with diverse interests in the Telecommunications industry, and CFO of Bangkok-based Precious Shipping Public Co., Ltd. He was also a Country Representative for the corporate finance division of ANZ Investment Bank, a division of Australia and New Zealand Banking Group LTD, based in Bangkok, Thailand. Mr. Ambani began his career in Bombay where he worked as an auditing & taxation manager for RSM Advisory Services and an auditor for Rajendra & Co. He received both a Bachelor of Law and a Bachelor of Commerce & Economics degree from the University of Bombay. He is a CPA and a Chartered Accountant.

Mr. Ambani will be based in Jefferies' Houston office and will report to Mr. Black.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for over 40 years. Headquartered in New York, with more than 20 offices around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm is a leading provider of trade execution in equity, high yield, convertible and international securities for institutional investors and high net worth individuals. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF; www.jefferies.com).

CONTACT:
Jefferies & Company, Inc.
Tom Tarrant, 203-708-5989 ttarrant@jefferies.com

SOURCE: Jefferies & Company, Inc.