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JEFFERIES EXPANDS PRIME BROKERAGE SERVICES

Firm Adds Capital Introduction Capabilities And Enhances Sales Effort With Addition Of Three Experienced Professionals

NEW YORK, April 4, 2007 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of three senior professionals to enhance its prime brokerage unit. Robert E. Enslein, Jr. and Jeffrey M. McCarthy join as Senior Vice Presidents focused on capital introduction, and Robin H. Fink joins as Senior Vice President in prime brokerage sales. Collectively, these three hires bring over 35 years of relevant experience and significantly expand the Firm’s services for small and mid-sized hedge funds.

Messrs. Enslein, McCarthy and Fink join an experienced team of more than 20 professionals with a growing client base of hedge funds. In its first full year of operations, Jefferies’ Prime Brokerage is expanding rapidly and is already servicing over 50 funds. The platform consists of offering portfolio reporting, order management, risk reporting, electronic trading, capital introduction and securities lending. The group’s customer focus is primarily long/short US equity-oriented hedge funds with $25 million to $500 million in assets, in addition to start-up funds with over $10 million in assets. The group has sales professionals in New York, Cleveland, Los Angeles and San Francisco.

“The addition of Robert Enslein, Jeff McCarthy and Robin Fink complements Jefferies’ capabilities and demonstrates the Firm’s overall commitment to becoming a leading provider of prime brokerage services to small and mid-sized hedge funds,” said Glen C. Dailey, Head of Prime Brokerage at Jefferies. “We are confident that the addition of capital introduction services and increased sales capabilities will make a strong and immediate contribution to our client offering.”

Jefferies has been serving institutional investors in equities since 1962 and has grown to be one of the leading firms providing liquidity and best execution for the securities of small- and mid-cap companies. With global exchange memberships and connectivity throughout North America, Europe and Asia, the Firm makes markets in over 5,000 stocks and trades the securities of more than 8,500 companies. In 2006, Jefferies ranked as a Top 5 Trader of more than 2,400 stocks, according to AutEx®, and second among brokerages, based on minimizing total transaction costs, per Elkins/McSherry. The Firm is also a leading provider of equity research, covering the securities of nearly 900 companies. In addition, Jefferies ranks as a top equity underwriter, based on the performance of lead-managed underwritings, according to Dealogic, and completed more than 100 equity and equity-linked transactions valued at $21 billion in 2006.

Mr. Enslein has nearly 15 years of experience in the securities industry. He was President and Co-founder of Aremet Capital Management, an energy-focused hedge fund. Previously, he was a Director and Global Telecom Specialist with Credit Suisse First Boston, where he worked for four years. He also served as Director and Branch Office Manager for ING Barings’ Atlanta office. Mr. Enslein was Senior Vice President in Equity Sales for Gerard Klauer Mattison, where he spent seven years. He began his career at Moran Asset Management. Mr. Enslein has a BA from Emory University.

Mr. McCarthy has eleven years of financial services experience, including six focused on building, running and marketing alternative investment management firms. Prior to joining Jefferies, he was Managing Director at Alder Capital Management, LLC, a long/short US equity fund. Previously, Mr. McCarthy was COO for G2 Capital Management, LLC, an event-driven value fund, where he spent over three years. He was an independent financial advisor and began his career as a business consultant with Arthur Andersen, LLP. He has a BS in Business Administration from Miami University.

Mr. Fink has eleven years of financial services experience. Prior to joining Jefferies, he was Vice President of Sales with Reflow Management, LLC. Previously, Mr. Fink was a Principal in the investment banking division of Bank of America Securities, where he worked for nine years. Mr. Fink has a BA from University of California at Berkeley.

Mr. Enslein will be based in the Firm’s New York headquarters. Messrs. Fink and McCarthy will be based in the Firm’s San Francisco office.

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 and Prosek
203.378.1152 x149
Todd@cjpcom.com