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JEFFERIES EXPANDS FIXED INCOME BUSINESS IN MORTGAGE-BACKED SECURITIES

Ten Senior Professionals To Join Growing Effort

NEW YORK, April 22, 2008 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the expansion of its fixed income business in mortgage-backed securities. The Firm expects ten senior professionals to join its existing mortgage trading effort over the next several weeks.

The enlarged team of mortgage specialists will focus on the trading, origination and sales of mortgage-backed securities. This group will be led by Managing Directors William H. Jennings, II, who is expected to join the Firm in June, and Johan Eveland, who joins immediately. Together, Messrs. Jennings and Eveland, Co-Heads of Jefferies Mortgage Trading Group, have more than 35 years of experience in the sales and trading of fixed income securities.

Also joining the mortgage trading effort will be an additional four Managing Directors focused on mortgage sales, and four Managing Directors specializing in non-agency adjustable rate mortgage, credit, derivatives, and non-fixed rate trading. These eight additional professionals collectively bring more than 60 years of experience to the Firm.

“Our augmented mortgage sales and trading team will be among the best in the business and we are very excited to have these outstanding professionals join our team,” commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. “This expansion is consistent with Jefferies’ ongoing and broad desire to take advantage of market dislocations and the occasional availability of exceptional individuals to join our platform.”

“With the severe dislocation in the mortgage market and the reduced presence of key industry players, we believe a mortgage trading platform built on knowledge and relationships can be a very successful addition to our fixed income presence,” added Tim Cronin, Head of the Fixed Income Division at Jefferies.

“We’re very excited to be part of Jefferies’ fixed income effort and see significant opportunity in both the current mortgage market and in continuing to grow the Jefferies platform,” said Mr. Eveland.

This announcement comes on the heels of the addition of Thomas Thees, who joined the Firm’s fixed income group earlier this month. Jefferies’ broader fixed income effort, not including high yield, includes 100 professionals actively trading corporate bonds, US government agency securities, mortgage-backed securities, municipal bonds and emerging markets debt. The group serves over 3,000 institutional clients and trades in more than 3,000 individual issues.

Prior to joining Jefferies, Mr. Eveland was a managing director and a co-head of agency and non-agency mortgage backed securities trading at RBS Greenwich Capital, where he worked for eight years. Previously, he was a co-founder of Alta Residential Mortgage Trust, a joint mortgage REIT of Pacific National Bank and Lehman Brothers. Mr. Eveland was also a vice president and portfolio manager at Washington Mutual.

Mr. Jennings was a managing director in the mortgage sales division at RBS Greenwich Capital where he worked for five years and was the top mortgage salesperson in 2007. Previously, he spent twelve years at Lehman Brothers, where he was also a top mortgage salesperson.


About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for over 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
Josh Passman, Cubitt Jacobs & Prosek, 212 279 3115, x203, jpassman@cjpcom.com