Jefferies

Press Release

FOR IMMEDIATE RELEASE
Jefferies Reports Quarterly Financial Results

NEW YORK, June 21, 2011 – Jefferies Group, Inc. (NYSE: JEF) today announced financial results for its fiscal second quarter and first half ended May 31, 2011. 

Highlights for the three months ended May 31, 2011 (which reflect the firm’s $4.6 million charitable contribution to the relief efforts in Japan, as well as the $4.8 million in out-of-pocket costs incurred through May 31 in connection with the firm’s acquisition of Prudential Bache scheduled to close on July 1), versus the three months ended May 31, 2010:

  • Net revenues of $727 million, up 9% versus $668 million
  • Net income to Common Shareholders of $81 million ($87 million without the unusual expense items) versus $84 million
  • Net earnings per common share of $0.36 ($0.39 without the unusual expense items) versus $0.41
  • Record quarterly Investment Banking net revenues of $328 million, up 28% versus $256 million

Highlights for the six months ended May 31, 2011 versus the five months ended May 31, 2010:

  • Net revenues of $1.5 billion versus $995 million
  • Net income to Common Shareholders of $168 million ($174 million without the unusual expense items) versus $116 million
  • Net earnings per common share of $0.78 ($0.80 without the unusual expense items) versus $0.57
  • Record six month Investment Banking net revenues of $567 million versus $352 million

"We are very pleased with these solid quarterly results, which reflect our continued momentum in investment banking, and the durability of our sales and trading platform, despite the challenging market environment that persisted throughout the quarter,” commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.  “While we have much more work to do, we are pleased with our team, our strategic position, our diversified business mix, and our integrated approach to delivering one firm for the benefit of every client."

A conference call with management discussion of these financial results will be held today, Tuesday, June 21, 2011, at 9:00 AM Eastern.  Investors and securities industry professionals may access the management discussion by calling 877-710-9938 or 702-928-7183.  A one-week replay of the call will also be available at 800-642-1687 or 706-645-9291 (conference ID # 72366780).  A live audio webcast and delayed replay can also be accessed at Jefferies.com.

Jefferies Group, Inc. (NYSE: JEF), a global securities and investment banking firm, has served companies and investors for nearly 50 years.

 -- see financial tables in attached --

 (click here to view full report)

For further information, please contact:

Peregrine C. Broadbent
Chief Financial Officer
Jefferies Group LLC
(212) 284-2338