2007

FOR IMMEDIATE DISTRIBUTION

JEFFERIES ANNOUNCES RECORD QUARTERLY RESULTS

Net Revenues Up 42% To Record $465 Million
Net Earnings Up 49% To Record $68 Million
Earnings Per Share Up 41% To Record $0.45
Investment Banking Up 81% To Record $223 Million

New York, July 17, 2007 – Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the second quarter ended June 30, 2007.

Highlights for the second quarter ended June 30, 2007:

Net revenues were up 42% to a record $465.5 million

Net earnings were up 49% to a record $67.8 million

Earnings per share (diluted) were up 41% to a record $0.45

Investment banking revenues were up 81% to a record $223.1 million

“We would like to thank our loyal clients and our 2,313 employee-partners because they are the ones directly responsible for our best quarter in Jefferies’ 45-year history,” commented Richard B. Handler, Chairman and CEO of Jefferies.

“We are pleased with the integration, breadth and depth of our expanded investment banking platform, as well as our overall strong trading results. We look forward to building on our solid foundation,” added Brian P. Friedman, Chairman of the Executive Committee of Jefferies.

Conference Call

A conference call with management discussion of financial results for the second quarter ended June 30, 2007 will be held July 17 at 9:00 AM Eastern and can be accessed at 706-634-9290. A replay of the call will also be available at 402-977-9140 (code: 21343379). A live audio webcast and delayed replay will also be available at www.jefferies.com. Questions for consideration by management can be submitted by 8:30 AM Eastern on July 17 through the “Contact Us” function at www.jefferies.com or by calling 203-708-5975.

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).

Press Release in PDF format (financials included)

Contact:
Joseph A. Schenk, CFO
(212) 284-2338