FOR IMMEDIATE DISTRIBUTION

JEFFERIES ASSET MANAGEMENT ADDS MANAGING DIRECTOR OF MARKETING

Joseph F. Pescatore To Help Continue Growth Of Asset Management Business

NEW YORK, March 27, 2007 -- Jefferies Asset Management, LLC ("JAM"), a subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced that Joseph F. Pescatore has joined as a Managing Director of Marketing for the firm’s multi-strategy asset management platform. Mr. Pescatore has nearly 20 years of experience marketing alternative investment opportunities for the financial services industry.

Mr. Pescatore brings valuable experience to the JAM platform. Most recently Mr. Pescatore helped raise significant capital for private equity firm, Energy Capital Partners. Prior to Energy Capital Partners, Mr. Pescatore founded and headed the capital introduction groups at both UBS Investment Bank and Lehman Brothers, Inc.

“We are delighted to welcome an experienced professional like Joe Pescatore, who brings an outstanding reputation and network to JAM,” said Bradford L. Klein, Co-President of JAM. “We have established a solid, scalable infrastructure to grow our asset management platform and we believe Joe will contribute significantly to that effort.”

Richard B. Handler, Chairman and Chief Executive Officer of Jefferies Group, Inc., added, "Asset management is an important growth area for Jefferies, and Joe Pescatore is a valuable addition to this effort."

“I am very excited to join the Jefferies Asset Management team,” Mr. Pescatore commented. “JAM’s emphasis on high quality asset management and the Firm’s entrepreneurial culture were key to my decision to become a part of this growing effort.”

Jefferies Asset Management, LLC is registered with the U.S. Securities and Exchange Commission as an investment adviser. Jefferies Group's global asset management capabilities include equity, fixed income, and convertible securities. The firm’s subsidiaries collectively manage over $4.4 billion in assets, and $5.2 billion including third party managed funds (funds in which the company has an interest in the entities that manage these assets or otherwise receives a portion of the management or incentive fees) as of December 31, 2006.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for 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 & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF; www.jefferies.com).

For further information, please contact:

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

Todd Miller, Cubitt Jacobs & Prosek, 203 378 1152, 149, Todd@cjpcom.com