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JEFFERIES EXPANDS EUROPEAN INVESTMENT BANKING EFFORT IN MARITIME, OIL SERVICE AND INFRASTRUCTURE

Three managing directors join Jefferies in London

LONDON and NEW YORK, 14 December 2006 -- The Jefferies investment bank announced today the hiring of three additional senior investment banking professionals in the firm’s transportation, oil service and infrastructure group. The bankers, formerly at HSBC, join Jefferies International Ltd, a subsidiary of US-based Jefferies Group, Inc. (NYSE: JEF), and enhance the firm’s efforts to provide strategic advisory and capital raising services in these sectors.

Joining as Managing Directors in Jefferies’ Investment Banking Division are Anne-Christin Dovigen, Nick Davies and Andrew Meigh. Collectively, these professionals bring more than 35 years of industry, capital markets and advisory experience serving clients in Europe, the US and Asia.

Jefferies provides a full range of investment banking services to growing companies in the oil services, maritime and offshore industries. In 2005, the firm completed nearly 20 transactions in this area valued at $4.8 billion, and in 2006 has already completed 25 transactions valued in excess of $5 billion. As part of the ongoing expansion of Jefferies’ global offering, the firm also acquired Nomad accreditation on the Alternative Investment Market (AIM) of the London Stock Exchange during 2006.

Richard B. Handler, Chairman and CEO of Jefferies, commented:
“The addition of these senior bankers significantly enhances the breadth and depth of our established effort in this dynamic area. Their industry and product expertise will contribute significantly to the development of our global business.”

Chris M. Kanoff, Co-Head of Investment Banking at Jefferies, added:
"Jefferies is deeply committed to providing a world-class offering to transportation, oil service and infrastructure companies as an integral part of our broad and thriving global investment bank.”

John Sinders, a Managing Director and Head of the Firm’s Transportation, Oil Service and Infrastructure Group said:
“Ms. Dovigen and Messrs. Davies and Meigh are seen as world class in the industry and we are very excited to have them as part of our team, which is now the largest groups of bankers focused on this area. They will significantly enhance our ability to serve our growing global client base.”

Ms. Dovigen, previously Co-head of HSBC’s London-based shipping team, has more than 15 years of experience in financial services and has worked extensively with shipping companies including Goldenport, Stena, Arlington Tankers, Bergesen and Frontline. Previous positions include Vice President in the Global Shipping Group at JP Morgan where she worked for 10 years across product groups. Ms. Dovigen earned a BA with honours in Economics and Finance from Strathclyde University.

Mr. Davies, previously Director of the Global Industrials Group and Head of Maritime Investment Banking at HSBC, has more than 12 years of investment banking experience gained in US and European institutions, working on advisory and capital markets transactions across the transportation and infrastructure sector. Previous positions include Vice President in the Global Industrial Group for Citigroup Global Markets and Assistant Director in the Transportation & Infrastructure division with ABN AMRO Corporate Finance. He has an MSc in Economics from the London School of Economics and an MA in Economics from Cambridge University.

Mr. Meigh, previously Director of Equity Capital Markets and Head of Transport Equity Capital Markets at HSBC, has 12 years of equity capital markets and corporate broking experience, and has worked on a wide variety of equity and equity linked financings involving UK and international clients. Previously he worked in the Corporate Finance Department at Norton Rose. Mr. Meigh received a first class degree in Politics from the University of Leeds and is a member of the bar of England and Wales.


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 more than 25 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 International Limited, a UK-incorporated, wholly owned subsidiary of US-based Jefferies Group, Inc., was established in London in 1985 and is authorized and regulated by the Financial Services Authority ("FSA").

For further information, please contact:

Tom Tarrant
Director of Marketing
Jefferies & Company, Inc.
T: +1 203 708 5989
E: ttarrant@Jefferies.com