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JEFFERIES TO OPEN FRANKFURT OFFICE IN CONTINUED GLOBAL EXPANSION

Hiring Of 13 Investment Banking Professionals Extends Firm's European Footprint

FRANKFURT, LONDON and NEW YORK, 9 July 2007 -- Jefferies announced today that it intends to open a new office in Frankfurt, Germany as the next step in the Firm’s ongoing expansion and to extend its global investment banking services into Germany. Jefferies is a leading financial advisor, underwriter and institutional securities firm, serving growing companies and their investors worldwide. Jefferies’ German office will be co-led by managing directors Richard Markus and Warren Scott, who are joined by fellow managing directors Martina Ecker, Alexander Mueller and Peter Beusch, as well as directors Christian Muthler and Matthias Eisfeld. Together with additional investment bankers and appropriate support staff, the team expects to expand the total Frankfurt office headcount to approximately 25 employees shortly after opening.

This group of experienced and senior professionals will manage corporate relationships regionally, initiating and executing transactions to meet client objectives, as well as cover private equity, venture capital and other financial sponsors in Germany. Industry and product expertise will be supported from Jefferies’ offices in London and the U.S., where the Firm provides growing and mid-sized companies with advisory and underwriting services through M&A, leveraged finance, commercial lending, equity and equity-linked financing, fund placement and restructuring solutions.

As Jefferies continues to pursue its growth strategy, the Firm intends to extend globally its strong US franchise as the investment bank of choice for growing companies and their investors. In addition to this intended expansion into Germany, Jefferies recently announced the acquisition of LongAcre Partners, a leading, London-based corporate advisory firm focused on the European media and online sector, as well as the acquisition of the Putnam Lovell investment banking business, a leading adviser to the financial services sector operating from London, New York and San Francisco. Earlier this year, the Firm also appointed David Weaver as Head of International Investment Banking based in London.

Richard Handler, Chairman and CEO of Jefferies, commented:
“Jefferies' full-service capabilities and multi-industry expertise are well-suited for opportunities in the German market, and these experienced individuals bring with them meaningful relationships that will enhance our firm’s European presence and overall scalability. A Frankfurt office, in addition to this past month’s acquisitions of LongAcre Partners and Putman Lovell, increases the number of Jefferies investment banking professionals by more than ten percent and continues the expansion of our increasingly global practice, a key component of Jefferies’ overall growth strategy. We are very excited to welcome our new partners.”

David Weaver, Head of International Investment Banking said:
"These talented professionals will enable Jefferies to have an immediate and strong presence in a fully-operational office in this key European market. The cross-border nature and multi-faceted needs of growing companies throughout Europe are well-served by the global capabilities of Jefferies, including our advisory expertise and array of capital raising options.”

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 has been operating outside the U.S. for over 20 years and provides a full-service offering to growing and mid-sized companies and their investors on a global basis. The Firm has a network of offices in leading financial centers in Europe and Asia, including London, Paris, Zurich, Tokyo, Shanghai, Singapore and Dubai, with a support office in Hong Kong and pending registration in New Delhi. The Firm provides a range of investment banking services in a number of global growth sectors including aerospace and defense, technology, energy, healthcare, industrial and others. Jefferies is also a leader in the sale of global equities, convertible and high yield bonds, providing a variety of leading-edge solutions in sales, trading, analysis and investment management. 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.

The German financial market has long been served by Zurich-based Jefferies (Switzerland) AG for asset management and securities brokerage services, including U.S. equities. The Frankfurt office will be a branch of Jefferies International Limited. Jefferies International Limited is a member of the London Stock Exchange with 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).

Richard Markus, Managing Director, commented:
“We are delighted to be joining a Firm with such a unique franchise in the mid cap market and with specific strengths in sectors such as industrials, automotive, technology and telecoms, media, consumer, aerospace and defence, healthcare, cleantech and logistics. The combination of our team with Jefferies existing resources will create a new, innovative and valuable capability for mid-sized German companies and their investors.”

Warren Scott, Managing Director, added:
“Mid-sized corporates and financial sponsors in Germany have typically had little access to the sort of investment banking advice and products that a global specialist like Jefferies can offer. The expertise, global reach and sector knowledge that Jefferies offers provides great opportunities to German companies with international ambition both in M&A and capital markets.”


For further information, please contact:

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

Todd Miller
Cubitt, Jacobs & Prosek
T: + 10 203 378 1152
E: todd@cjp.com

Desirée Maghoo
Cubitt Consulting
T: +44 207 367 5100
desiree.maghoo@cubitt.com


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.


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.