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JEFFERIES PLANS SIGNIFICANT EXPANSION OF CONSUMER INVESTMENT BANKING EFFORT

Jim Walsh To Head Consumer And Retail Investment Banking Team In Charlotte

NEW YORK and CHARLOTTE, October 15, 2007 -- The Jefferies Investment Bank announced today the hiring of Jim Walsh as Managing Director to lead the Firm’s consumer and retail investment banking effort. Mr. Walsh has nearly 20 years of consumer and retail experience and most recently was head of the food industries investment banking group at Wachovia Securities, Inc. Jefferies expects Mr. Walsh will be joined over the next several weeks by additional investment bankers who will be focused in the consumer and retail sector. Mr. Walsh joins Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), and will be based in the Firm’s new office in Charlotte, North Carolina.

Mr. Walsh will be responsible for the continued build-out of the consumer and retail team and the Charlotte office where Jefferies hopes to expand substantially over the next few years. Jefferies’ consumer effort will specialize in providing a full suite of capital markets products and financial advisory solutions to businesses that include branded consumer product companies, retailers, restaurants, apparel and consumer services companies.

“Further building our consumer and retail investment banking team is a significant initiative for our investment banking group." commented Richard B. Handler, Chairman and CEO of Jefferies. “Jim Walsh is indicative of the caliber of professionals attracted to the Jefferies platform, and his hiring demonstrates our commitment to serving growing companies and their investors in this vital segment of the world’s economy.”

“Jim Walsh's strong industry experience and track record of best in class transactions in equities, leverage finance and mergers and acquisitions position him as a logical choice to drive our investment banking activities in consumer and retail,” added Chris M. Kanoff, Co-head of Investment Banking at Jefferies. “We are confident that Jefferies will build a world-class consumer and retail practice under his leadership.”

"Companies in the global consumer sector are extremely dynamic as they are constantly innovating and responding to trends and behavioral shifts,” added Mr. Walsh. "The capabilities of the Jefferies platform and its focus on the middle market presented a perfect fit for our efforts to serve clients within the consumer sector. I look forward to applying my experience and relationships to the continued buildout of Jefferies' consumer and retail practice and establishing a presence for the firm in Charlotte."

As an investment banker, Mr. Walsh has been a lead banker for clients including Landry's Restaurants, Inc., Texas Roadhouse, Inc., Morton’s Restaurant Group, Red Robin Gourmet Burgers Inc, McCormick & Schmick's Seafood Restaurants, Inc, Ruth's Chris Steak House Inc., Carrols Restaurant Group, Inc. and Jack in the Box Inc. Over the last 18 months, Mr. Walsh led a team that advised on the high profile assignments of OSI Restaurant Partners Inc.'s sale to Bain Capital, Catterton Partners and Company Founders, CBRL Group Inc.'s review of strategic alternatives and RARE Hospitality International, Inc.'s sale to Darden Restaurants, Inc.


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 and Prosek, 203 378 1152, 149, tmiller@cjpcom.com