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JEFFERIES ACQUIRES LONGACRE PARTNERS, A LEADING EUROPEAN MEDIA AND INTERNET M&A ADVISORY FIRM

Acquisition Supports The Firm's Continuing Global Expansion In Focus Industries

LONDON and NEW YORK, 31 May 2007 -- Jefferies Group, Inc. (NYSE: JEF) today announced that it has acquired LongAcre Partners, a leading, London-based corporate advisory firm focused on the European media and online sector. This acquisition is the next step in the ongoing expansion of the Jefferies global investment bank, a leading financial advisor, underwriter and institutional securities firm serving growing companies and their investors, and follows the Firm’s recent appointment of David Weaver as Head of International Investment Banking based in London.

Jefferies International Limited, the UK-incorporated wholly-owned subsidiary of the Group, is a member of the London Stock Exchange and is an approved NOMAD on the London Stock Exchange’s AIM market. Core sector practices based in London include technology, energy, aerospace and defence, healthcare, cleantech, shipping and logistics.

LongAcre Partners, founded in August 2000, will contribute deep expertise in the media and internet sector, reflected by its role advising on transactions worth a total of circa $6 billion in 2006. Those transactions included the $200 million sale of Celador, the production company behind ‘Who Wants To Be A Millionaire?’, the $600 million acquisition of automotive data group EurotaxGlass’s, the $380 million sale of uSwitch, the internet price comparison company, and the $320 million sale of Friends Reunited, the leading UK online social network. As a result of the transaction, John Botts will be stepping down as Chairman of LongAcre Partners.

Richard Handler, Chairman and CEO of Jefferies, commented:
“Jefferies’ acquisition of LongAcre accelerates our effort to build our global investment banking platform in all of our focus industries. We are extremely pleased to welcome to Jefferies our new partners, whose extensive relationships and industry expertise meaningfully enhance our European and global presence in the media sector.”

Brian Friedman, Chairman of the Executive Committee of Jefferies, added:
“This acquisition, our fifth in five years, is consistent with Jefferies’ leadership role in serving growing companies and their investors, and our ability and opportunity to combine with high quality, specialist firms that can thrive on and leverage our full-service platform.”

Jonathan Goodwin, Chief Executive and Co-Founder of LongAcre, said:
"LongAcre has built an enviable reputation in investment banking services for the media and communications industry. As we considered the next phase of our expansion, it became clear that Jefferies would offer a close cultural fit, a platform from which to build and broaden our services, and a parent able to help us drive the business forward. My partners and I see great opportunity in joining Jefferies’ thriving platform.”

The LongAcre team joins Jefferies’ existing media and new media investment banking professionals in the Firm’s global coverage of the advertising & marketing services, publishing, broadcast media, intellectual property, Internet/e-commerce and music/leisure industries. Following the acquisition, Mr. Goodwin becomes chairman of the Firm’s global media investment banking group. Mark Leavitt will continue as group head of Jefferies’ media & communications investment banking team. In addition, Alec Ellison, head of technology investment banking at Jefferies, will also oversee the coordination of technology, media and telecommunications investment banking as chairman of Jefferies’ global TMT effort.

While terms of the acquisition were not disclosed, the transaction is similar in structure to Jefferies' other recent acquisitions and was completed with a combination of stock, cash and future payments. FSA approval has been received and the transaction is expected to close within a week.

As Jefferies seeks continued growth, the Firm intends to extend globally its strong US franchise as the investment bank of choice for growing companies. Jefferies worked on more than 350 transactions worth over $145 billion during 2006, with 165 debt and equity capital raisings and 190 merger, acquisition and restructuring engagements, including more than 80 transactions worth over $23 billion for European and Asian companies.

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). Jefferies International Limited, a UK-incorporated, wholly owned subsidiary of Jefferies Group, Inc., was established in London in 1985 and is authorized and regulated by the Financial Services Authority ("FSA").Jefferies International Limited is a member of the London Stock Exchange and has Nomad accreditation on the Alternative Investment Market (AIM), and is also a member of the Deutsche Börse (Xetra electronic trading platform), Euronext, Oslo Bors and Dubai International Financial Exchange (DIFX). Jefferies (Japan) Limited is a member of the Tokyo Stock Exchange and Jasdaq Securities Exchange.

About LongAcre

LongAcre is Europe’s leading independent management-owned corporate finance advisory house focusing on the European mid-market media sector, including online, entertainment and leisure. LongAcre has completed more than $12 billion of transactions. Recent advisory work includes the $2.4 billion restructuring of Trader Classified Media, the ongoing $1 billion offer for Datamonitor, the specialist publishing and research group and the prospective sale of Bureau van Dijk, the global financial information publisher.

For further information, please contact:

Tom Tarrant
Director of Marketing
Jefferies & Company, Inc.
T: +1 203 708 5989
E: ttarrant@Jefferies.com

Michael Henman/ John Beresford-Peirse
Cubitt Consulting
T: +44 207 367 5100
E: michael.henman@cubitt.com
E: john.beresford-peirse@cubitt.com

Jonathan Goodwin, Chief Executive
LongAcre Partners
T: +44 20 7759 4600
E: jg@longacrepartners.com

Tim Burt/Ash Spiegelberg
Brunswick Group LLP
T: + 44 207 404 5959
E: tburt@brunswickgroup.com
E: aspiegelberg@brunswickgroup.com


Special Note on Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements about our future and statements that are not historical facts. The forward-looking statements in this release pertain to the future development and expansion of our international investment banking business. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. The use of these forward-looking statements does not infer that the results will be achieved. It is possible that the actual results may differ materially from the anticipated results indicated in these forward-looking statements. Please refer to our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2007 for a discussion of important factors that could cause actual results to differ materially from those projected in these forward-looking statements.