FOR IMMEDIATE DISTRIBUTION

JEFFERIES EXPANDS FIXED INCOME SALES & TRADING TEAM WITH ADDITION OF SENIOR ABS TRADER

NEW YORK, May 14, 2007 – Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of John S. Randolph as Senior Vice President in Jefferies Fixed Income Division, focusing on trading distressed asset-backed securities (ABS), including residential and commercial mortgage-backed products and collateralized debt obligations (CDOs).

Mr. Randolph has over 17 years of analytical and trading experience in various ABS-related sectors. He comes to Jefferies from Cantor Fitzgerald & Co., where as the firm’s Director of ABS Trading he focused on residential ABS, including subordinated and distressed ABS, as well as CDOs.

The hiring of Mr. Randolph comes about a month after the addition of four senior sales and trading professionals by Jefferies Fixed Income. These include Paul Shapiro and Anthony Slabaugh, who joined the Firm as managing director and vice president, respectively, to drive Jefferies’ Cleveland-based fixed income mortgage-backed securities (MBS) trading efforts. Christopher Drabin joined as a senior vice president and trader focused on adjustable rate mortgage securities (ARMs) in the Firm’s New York office, while Edward Johns joined as a senior vice president in Jefferies’ Boston office to focus on MBS sales.

“John Randolph joins an established Jefferies team of fixed income professionals that is very active in making markets in a range of MBS products, including mortgage pass-through securities, collateralized mortgage obligations and ARMs,” said Tim Cronin, Head of the Fixed Income Division at Jefferies. “With his strong experience trading distressed products, John will help Jefferies broaden the scope of our capabilities and will be an important component in the continued build-out of our fixed income platform.”

Jefferies’ Fixed Income division is a market maker in investment grade fixed income instruments for mid-sized institutional clients in a broad array of fixed income products. The group specializes in corporate bonds, U.S. government agency securities, mortgage-backed securities, municipal bonds and emerging markets debt.

Mr. Randolph, who will be based in Austin, Texas, and officially joins Jefferies on June 1.

CONTACT:
Tom Tarrant, Jefferies & Company, Inc., 203 708 5989, ttarrant@jefferies.com
Todd Miller, Cubitt Jacobs & Prosek, 203 378 1152, x149, tmiller@cjpcom.com