FOR IMMEDIATE DISTRIBUTION

JEFFERIES ANNOUNCES ALL-TIME RECORD QUARTERLY NET REVENUES, NET EARNINGS AND EARNINGS PER SHARE

Record net revenues of $419 million

Record net earnings of $62 million

Record earnings per share of $0.42

NEW YORK, April 17, 2007 -- Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the first quarter ended March 31, 2007.

Highlights for the record first quarter ended March 31, 2007:

Net revenues were a record $418.8 million

, compared to $415.4 million for the first quarter of 2006.

Net earnings were a record $62.3 million

, compared to $58.4 million for the first quarter of 2006.

Earnings per share (diluted) were a record $0.42

, compared to $0.41 for the first quarter of 2006.

Investment banking revenues were a record $170.1 million compared to $127.7 million for the first quarter of 2006.

"This was the strongest investment banking quarter in Jefferies' history and our second best overall trading quarter ever. I'd like to thank all of our clients and employee-partners for their confidence and dedication," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.

"We are very pleased to have delivered solid sequential growth during this past quarter and, more importantly, to have exceeded the exceptional results of last year's first quarter," added Brian P. Friedman, Chairman, Executive Committee of Jefferies.


Conference Call

A conference call with management discussion of financial results for the first quarter ended March 31, 2007 will be held April 17 at 9:00 AM Eastern and can be accessed at (706) 634-9290. A replay of the call will be available approximately two hours post-call at (402) 977-9140 (reservation number: 21335503). A live audio webcast and delayed replay will also be available under "Investor Relations" at www.jefferies.com. Questions for consideration by management can be submitted in advance through the "Contact Us" function at www.jefferies.com or by calling 203-708-5975 by 8:30 AM Eastern on April 17.


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).

Press Release in PDF format (financials included)

Contact:
Joseph A. Schenk
(212) 284-2338