EXPANDING OUR REACH
LongAcre Partners. In May 2007, we deepened our expertise in the media sector with the acquisition of LongAcre Partners, Ltd., a leading European media and Internet M&A advisory firm, complementing the Firm's established US media and new media investment banking professionals. This eight-year-old boutique firm had advised on more than 80 transactions worth a total of approximately $12 billion since its founding. This new team brings more than 20 valuable professionals to Jefferies and broadens our global coverage of the advertising and marketing services, publishing, broadcast media, intellectual property, Internet/e-commerce and music/leisure industries. In 2007, the Jefferies Global Media group completed more digital media deals under $1 billion than any other investment bank in our markets, and ranked second among media M&A advisors in Western Europe¹. In 2007, our global technology, media and telecommunications (TMT) groups completed nearly 130 transactions valued at almost $30 billion, including 20 TMT IPOs in the US, ranking among the top three Wall Street investment banks².

Putnam Lovell. In June, we welcomed to Jefferies the global financial services investment banking group of Putnam Lovell, for 20 years a leading advisor to the financial services sector. This team added approximately 25 investment banking professionals in New York, Boston, London and San Francisco,who are focused on the asset management, broker-dealer, financial technology and related industries. These additions complement the Firm's existing financial services practice, which primarily focused on specialty finance, transaction processing and other outsourced business services. Over the course of the year, this global team announced transactions with aggregate valuations in excess of $2.5 billion.

Frankfurt. In July, we began operating in Frankfurt, Germany, a key global financial center, with a team of nearly 20 investment banking professionals to cover all major industry sectors in German-speaking Europe; manage corporate relationships regionally; initiate and execute transactions; and cover private equity, venture capital and other financial sponsors in the region. These professionals also enhance our global Industrial investment banking practice. The office officially opened in September.

Consumer Team. During the course of 2007, we assembled a team of industry-leading consumer-focused investment banking professionals, charged with building out a dedicated effort in this sector. The team has broad transaction capabilities, and has grown to more than 20 professionals as of year-end, with industry coverage including consumer products, retail, apparel, food, food service, food retail and beverages. We are optimistic this team will follow a similar growth model to that of our Industrial practice, which began as a small team in 2003 that has grown to 30, executing 65 transactions valued at $18.4 billion in 2007.

India and Singapore. In October, we officially opened our doors in New Delhi, India, with the establishment of Jefferies India Private Limited. Outside India, our investment banking professionals have to date raised close to $2 billion for Indian issuers, including more than $850 million in 2007 for clients in a range of sectors including media, industrials, technology, healthcare and textiles. We also participated in our first Global Depository Listing (GDR) of an Indian company. Separately, Jefferies initiated equity research coverage of several Indian companies during the year. In addition, our Singapore office officially became licensed in March 2007.

London. In November, we consolidated and relocated our Jefferies International headquarters office to Vintners Place in London. The move consolidated the Firm's five London locations (the results of various acquisitions), and brought together our nearly 350 investment banking, sales, trading, research and asset management professionals into one tailored location.

1 Thomson Financial/SDC, 2007. M&A Digital Media transactions in North America and Western Europe announced 1/1/07-12/31/07, under $1 billion. Includes mergers, acquisitions and minority investments with disclosed and undisclosed values. Excludes tender offers, exchange offers, self-tenders, repurchases, remaining interests, privatizations. M&A transactions in Western Europe completed 1/1/07-12/31/07, under $1 billion, in Advertising & Marketing, Broadcasting, Motion Pictures/Audio Visual, Publishing, Internet Software & Services and E-commerce/B2B. 2 Dealogic, 2007. Includes all completed US technology, media and telecommunications initial public offerings over $25 million.