FOR IMMEDIATE RELEASE

Jefferies Appoints Co-Presidents of Aerospace & Defense Investment Banking; Industry Veterans Richter and Farmer Promoted

NEW YORK--(BUSINESS WIRE)--March 8, 2006--Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the appointments of Michael J. Richter and William F. Farmer as Co-Presidents of Jefferies Quarterdeck, the Firm's aerospace and defense investment banking group.

The appointment of these experienced industry experts enhances Jefferies Quarterdeck's well-established investment banking practice, which was created with Jefferies' acquisition of award-winning M&A boutique Quarterdeck Investment Partners in 2002. Jefferies Quarterdeck is a leading provider of M&A and capital markets services to the aerospace, defense and government services-related industries. In 2005, Jefferies Quarterdeck worked on 32 transactions valued at nearly $7 billion, a level of activity that ranks the firm #1 in M&A in this area per Thomson Financial.

"With their incredible experience, relationships and depth of knowledge in aerospace, defense and government IT, Bill Farmer and Michael Richter will enable Jefferies to build upon our leading position as the investment bank of choice in this strategic segment of the world economy," commented Chris M. Kanoff, Co-Head of Investment Banking at Jefferies. "We remain focused on being the leading investment bank serving growing and mid-sized companies across a broad range of key industries."

Mr. Farmer, who has been at Jefferies Quarterdeck since 2000, has over 20 years of direct, industry-related experience in the government services sector. Mr. Richter, who joined Jefferies Quarterdeck in 2003, has more than 18 years of investment banking experience, focusing primarily on companies in defense electronics, homeland defense, and commercial aerospace. These professionals have advised on both sell-side and buy-side merger and acquisition engagements with a variety of large and middle-market aerospace, defense and government technology companies. In addition, Messrs. Richter and Farmer and the capital markets specialists of Jefferies provide an array of financing and capital markets solutions to companies throughout the industry.

These appointments follow the departure of Jon B. Kutler, founder of Quarterdeck Investment Partners, to pursue personal investments.

Named the "2005 Middle Market Investment Bank of the Year" by Investment Dealers' Digest Magazine, Jefferies has evolved from a specialized institutional trading firm to a full-service investment bank for growing and mid-sized companies and their investors. The firm provides a more extensive product and service offering and broader industry coverage than other firms focused on the middle market. Over the past five years, Jefferies has accomplished significant growth and diversification through a series of key industry hires, acquisitions of outstanding specialty firms, joint ventures with world class partners and strategic organic growth. In 2005, nearly 400 investment banking professionals contributed to record investment banking revenues of $495 million. Total 2005 investment banking revenues were up from $353 million in 2004 and $91 million in 2000.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for over 40 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).

CONTACT:
Jefferies & Company, Inc.
Tom Tarrant, 203-708-5989
ttarrant@jefferies.com

SOURCE: Jefferies & Company, Inc.