FOR IMMEDIATE DISTRIBUTION

JEFFERIES ENHANCES FIXED INCOME SALES & TRADING EFFORT

Firm Adds Four Experienced Mortgage-Backed Securities Specialists

NEW YORK, April 3, 2007 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of four senior sales and trading professionals in the Firm’s Fixed Income Division. Collectively, these four hires bring over 60 years of relevant experience, and significantly enhance Jefferies’ expertise in the sales and trading of mortgage-backed securities (MBS).

Paul Shapiro joins as managing director along with Anthony Slabaugh as a senior vice president to drive the Firm’s Cleveland-based fixed income MBS trading efforts. Christopher Drabin joins as a senior vice president and trader focused on adjustable rate mortgage securities (ARMs) in the Firm’s New York office. Edward Johns joins as a senior vice president in Jefferies’ Boston office to focus on MBS sales. Messrs. Johns, Shapiro, Slabaugh and Drabin join an established team of professionals that makes markets in most mortgage-backed products and is very active in mortgage pass-through securities, collateralized mortgage obligations (CMOs) and ARMs.

“We are excited to welcome individuals of the caliber of Paul Shapiro, Edward Johns, Christopher Drabin and Anthony Slabaugh to our group,” commented Tim Cronin, Head of the Fixed Income Division at Jefferies. “Their expertise is extremely complementary to our current mortgage-backed securities team and will be instrumental in the continued build-out of our platform.”

Richard B. Handler, Chief Executive Officer of Jefferies, added, “This addition to our Fixed Income Division is yet another important component in Jefferies’ full-service platform and our commitment to offering a comprehensive suite of sales and trading services for our institutional clients.”

Mr. Shapiro has more than 18 years of experience trading fixed income securities, and a total of 24 years in financial services. Prior to Jefferies, he was a director of fixed income in charge of mortgage-backed securities trading at KeyBanc Capital Markets in Cleveland, where he worked for approximately 12 years. Previously, Mr. Shapiro worked at Donaldson Lufkin Jenrette in New York trading specified pools and CMOs.

Mr. Johns is an 18-year veteran in fixed income securities sales. Prior to Jefferies, he was a managing director in the fixed income division at KeyBanc Capital Markets, where he focused on mortgage-backed securities sales and worked for more than 7 years. Previously, he worked as a salesperson at Nomura Securities in New York. He began his career in fixed income at Smith Barney in New York as a CMO trader.

Mr. Drabin has more than 17 years of fixed income trading experience. He was previously a Senior Vice President at Cantor Fitzgerald, where he traded all agency and whole-loan ARM products for more than three years. Prior to Cantor Fitzgerald, he spent four years working on Bloomberg’s MBS product. He also traded ARMs at Chase Securities and Paine Webber. Mr. Drabin began his career on Wall Street at the Discount Corp of New York.

Prior to Jefferies, Mr. Slabaugh worked for KeyBanc Capital Markets, where he spent the last six years as a senior trader focused on CMOs, and previously worked on that firm’s government agency securities desk.


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).

CONTACT:
Jefferies: Tom Tarrant
(203) 708-5989
ttarrant@Jefferies.com