FOR IMMEDIATE DISTRIBUTION

JEFFERIES GROUP, INC. SELLS $600 MILLION OF SENIOR DEBT

NEW YORK, June 5, 2007 -- Jefferies Group, Inc. (NYSE: JEF) announced today the sale of $600 million of debt securities consisting of $250 million aggregate principal amount of unsecured 5.875% senior notes due 2014 and $350 million aggregate principal amount of unsecured 6.45% senior debentures due 2027.

The notes were priced to yield 5.932% at a spread of 100 basis points over the comparable U.S. Treasury bonds. The debentures were priced to yield 6.49% at a spread of 145 basis points over the comparable U.S. Treasury bonds. The Company’s senior unsecured debt securities are rated Baa1/BBB+/BBB+ (Moody’s/Standard & Poor’s/Fitch). The expected closing date is June 8, 2007.

Jefferies & Company, Inc., Citigroup Global Markets Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated are the joint book-running managers of this offering. BNP Paribas Securities Corp., BNY Capital Markets, Inc., Goldman, Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Greenwich Capital Markets, Inc., Banc of America Securities LLC, Fox-Pitt, Kelton Incorporated, Keefe, Bruyette & Woods, Inc., and SG Americas Securities, LLC are acting as co-managers. A prospectus supplement may be obtained from Citigroup at Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220 or Merrill Lynch & Co. at 4 World Financial Center, New York, New York 10080.

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 is a UK-incorporated, wholly owned subsidiary of Jefferies Group, Inc.

Contact:
Joseph A. Schenk, CFO
212-284-2338
jschenk@Jefferies.com

This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or debentures nor shall there be any sale of the notes or debentures in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Offers will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.