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JEFFERIES APPOINTS HEAD OF SPECIAL SITUATIONS SALES & TRADING

Jordan White Joins Firm'S Leading Equities Platform

NEW YORK, September 10, 2007 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of Jordan White as Head of Special Situations in the Firm’s Equities Division. Mr. White has fifteen years of experience in the securities industry, including eight focused on special situations securities position trading and sales. He was most recently an Executive Director in the Equities Division at Morgan Stanley, where he was instrumental in building that firm’s special situations trading effort.

Mr. White will be responsible for building out Jefferies’ special situations effort. He will help expand and integrate the Firm’s growing special situations capabilities to offer a more diversified product offering to Jefferies’ institutional investor client base, including special situations, risk arbitrage, and event-driven securities trading. He is joined by senior vice president Andrew S. Baker, formerly the Director of Research and a Senior Analyst at Cathay Financial, Inc., with nine of years of experience evaluating event-driven investment opportunities. Mr. Baker will evaluate mergers, tenders, spin-offs, corporate cross holdings, and corporate restructurings. In addition, Brian E. Smith joins as senior vice president and special situations sector trader. Mr. Smith, formerly an Executive Director and special situations trader with Morgan Stanley, brings twelve years of trading experience to the effort.

Mr. White and his team will complement the Firm’s Trading Strategies effort, headed by Craig A. Peckham, which has been focused on client-centric, special situations strategies that include post-reorganization, spin-offs, and distressed equities. In addition to the Firm’s traditional cash equities trading business, Jefferies’ broader equities effort now includes derivatives, structured products, prime brokerage, securities finance, program trading and state-of-the-art algorithms for small- and mid-cap securities.

In a joint statement, Jason D. Griffith and Ross L. Stevens, Co-Heads of the Firm’s Equities Department commented: “Jordan White has an established expertise in special situations and an outstanding track record. We are confident that he and his team will be instrumental in the build-out of our special situations capabilities, and that their relationships and expertise will benefit the Firm’s broad and diverse client base of institutional investors and fund managers.”

“I look forward to creating a premier special situations effort at Jefferies that supports the Firm’s overall growth and expertise in sales and trading,” added Mr. White. “I have worked previously with both Andy Baker and Brian Smith, and we have a deep respect for Jefferies’ history in the risk arbitrage arena, its talented professionals and dynamic environment. The addition of our team with a dedicated focus on special situations sales, trading, and analysis will leverage the Firm’s existing full service platform and add value to Jefferies’ clients.”

Mr. White was most recently an Executive Director in the Institutional Equities Division at Morgan Stanley focused on special situations securities position trading and sales trading. Previously, Mr. White was a Director in the Equity Linked Products Division of Wachovia Securities responsible for the Risk Arbitrage and Special Situations Department. He also focused on merger arbitrage and special situations as a Senior Sales Trader at Cathay Financial. Mr. White began his career at First Albany Corporation, where he was an Institutional Equity Sales Trader. He has a BS in Business from Skidmore College.

Messrs. White, Baker, and Smith will be based in the Firm’s New York City headquarters office.


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