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JEFFERIES FINANCE ADDS ENERGY LENDING TEAM

Jefferies Direct Lending Capabilities Extended To Further Sector Expertise

NEW YORK, May 31, 2007 – The Jefferies Investment Bank today announced the hiring of Trond Rokholt, as a Managing Director for Jefferies Finance LLC, the Firm’s associated direct lending company. Mr. Rokholt has over 20 years of experience in providing financial solutions to clients in the energy and maritime transportation sectors, with a particular focus on the upstream, midstream and oilfield services segments. Previously, Mr. Rokholt was Head of the US Loan Syndication Group at Fortis Capital, with a focus on energy transactions; Head of Energy Investment Banking at BancBoston; and a Managing Director in the Natural Resources Group at ING. Mr. Rokholt is joined by vice presidents Henry B. Lang and Nicholas P. Whitcombe, formerly of Fortis and CIT, respectively.

Jefferies’ broad energy and energy-related investment banking practice consists of more than 120 professionals working on active engagements providing a full range of capital markets and advisory services to growing companies in the global energy sector. The investment bank serves an international client base that includes multinationals and major integrated companies, national oil and oil service, public and private independents, and maritime and shipping as well as emerging clean technology companies. In 2006, Jefferies worked on more than 60 announced energy transactions, valued at over $12 billion, and ranked as a leading M&A energy advisor, according to Thomson Financial. Jefferies also recently captured three “Deals of the Year” awards from The Banker magazine for energy-related transactions in Norway, Greece and Madagascar.

“Trond Rokholt has impressive transaction experience in the structuring, underwriting and distribution of non-investment grade energy-related loans,” said Andrew Booth, President of Jefferies Finance. “His approach mirrors that of Jefferies, pairing deep product knowledge and superb industry expertise.”

“I look forward to supporting the continued build-out of Jefferies' lending capabilities,” said Mr. Rokholt. “Jefferies’ global opportunity, growing reputation and ability to provide the full range of leveraged finance options, as well as a full suite of investment banking capabilities, are what drew me to this exceptional platform.”

Messrs. Rokholt, Whitcombe and Lang will be based in New York and join a team of nearly 30 capital markets professionals at Jefferies Finance focused on first and second lien term loans, revolving credit facilities, bridge loans, and mezzanine debt. A joint venture between Jefferies & Company, Inc. and MassMutual, Jefferies Finance was established over two years ago to underwrite loans for middle market and growth companies. During that time, Jefferies Finance has agented 50 transactions, including 34 as lead or co-lead arranger. Transaction sizes have ranged from $30 million to $500 million. The Firm’s broader leveraged finance team completed more than 60 high yield and bank loan transactions in 2006, helping clients raise nearly $15 billion, including $4 billion in direct loan origination.

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 & Prosek, 203 378 1152, x149, tmiller@cjpcom.com