FOR IMMEDIATE DISTRIBUTION

JEFFERIES CREATES CORPORATE EQUITY SERVICES GROUP

Peter Rosenthal To Lead Effort Focused On Corporations, Financial Sponsors And Venture Funds

NEW YORK, May 17, 2007 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), has announced the hiring of Peter A. Rosenthal, as a Managing Director and Head of the newly formed Corporate Equity Services Group. Mr. Rosenthal will be responsible for leading an effort to deliver Jefferies’ full range of equity services capabilities to the Firm's client base of corporations, financial sponsors and venture funds. Jefferies Corporate Equity Services Group expertise includes principal block transactions, corporate buybacks, restricted securities, hedging transactions and distributions.

Mr. Rosenthal has 14 years of experience in institutional sales and corporate services at firms including UBS Warburg, Dillon Reed, PaineWebber and Needham & Company, LLC, where he was most recently Managing Director and Head of Corporate Services.

“The establishment of Corporate Equity Services will have considerable impact on our ability to deliver our comprehensive range of products and services to our clients,” commented Richard B. Handler, Chairman and CEO of Jefferies. “With the ongoing growth of our platform over the past few years, implementing product distribution channels of this nature is critical for maximizing the power of our platform for our clients.”

“The addition of Peter Rosenthal and the establishment of a dedicated effort to align our full spectrum of products, from pre-IPO to monetization, will both enhance and streamline our offerings for institutional clients,” added Jason Griffith, Co-Head of Equities. “We are confident that his experience and relationships will drive this strategic initiative forward for the benefit of our clients.”

“The corporate and private equity community has grown tremendously and their needs have broadened and diversified over the past few years,” said Mr. Rosenthal. “I look forward to driving this effort and providing a central point to funnel the full resources of the Jefferies platform to this dynamic segment of the market.”

Jefferies has a growing presence within the private equity community with a dedicated Financial Sponsors & Private Capital investment banking practice. In 2006, Jefferies worked with growing companies on more than 350 transactions worth over $145 billion, including more than 80 transactions for private equity clients, valued at $11 billion.

Mr. Rosenthal will be based in the Firm’s New York Headquarters.


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, 149, tmiller@cjpcom.com