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JEFFERIES OPENS SHANGHAI OFFICE, EXTENDING GLOBAL REACH

US-based investment bank expands platform serving growing companies

NEW YORK and SHANGHAI, 11 December 2006 – The Jefferies investment bank today announced the opening of the firm’s first office in mainland China. As a representative office of Jefferies & Company, Inc., the principal operating subsidiary of US-based Jefferies Group, Inc. (NYSE: JEF), the Shanghai addition further extends in Asia the global investment bank’s efforts to serve growing and mid-sized companies and their investors.

This office opening represents the next step in an ongoing expansion of the Jefferies investment bank. The firm now has more than 2,250 employees in nearly 30 offices around the world. Jefferies provides a full-service offering of capital markets and advisory capabilities to growing companies, as well as securities research and trade execution for investors.

With an established team dedicated to China-based companies, Jefferies has a growing presence as an underwriter and advisor in the region, and has completed multiple cross-border M&A transactions involving companies such as Airborne, Widerthan, Integrant, and Palmsource. Since 2004, Jefferies has raised nearly $3 billion in equity and debt transactions for companies in Asia, and advised on M&A transactions involving Asian companies totaling nearly $2.5 billion. Jefferies has also worked with many of the leading China-focused private equity and venture capital funds.

“With the sixth-largest economy in the world, China is teeming with growing companies and has become an area of focus and attention for investors around the globe,” commented Paul Deninger, a Vice Chairman of Jefferies. “Greater China is rapidly becoming the hub for an even larger and rapidly growing Asian economy, and the establishment of an official presence in Shanghai demonstrates Jefferies’ deep commitment to this dynamic and emergent region, and will greatly facilitate our ability to serve clients.”

“We have been assisting growing China-based companies and their investors in achieving their objectives for some time now, and this office will significantly broaden our reach and enhance our ability to serve this market,” added Wei Hopeman, Chief Representative of the Firm’s Shanghai office. “China’s businesses are thriving, and Jefferies' focus on small and mid-sized companies provides a perfect strategic fit for the ever expanding Chinese economy.”

Editor’s Note:

Mr. Deninger was also a speaker at the CVCF conference on Dec 6-7 in Shanghai.

About Jefferies
Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for nearly 45 years. Headquartered in New York, with nearly 30 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), and Jefferies International Limited is the firm’s UK-incorporated, wholly owned subsidiary authorised and regulated by the Financial Services Authority.


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ttarrant@Jefferies.com

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