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JEFFERIES ADDS TWO LEADING CONSUMER RESEARCH ANALYSTS

Daniel Binder And Douglas Lane Join As Part Of Firm's Increased Commitment To Consumer Sector

NEW YORK, August 27, 2007 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of Daniel T. Binder, CFA, and Douglas M. Lane, CFA, as Managing Directors and Senior Equity Research Analysts in the Firm’s Equity Research division. Messrs. Binder and Lane bring their considerable securities research experience and a wealth of consumer expertise to Jefferies, strengthening the Firm’s presence in this important and growing sector. Mr. Binder, with some 15 years of experience, will cover broadlines and specialty hardline retailers, and Mr. Lane, with 18 years as an equity research analyst, will focus on consumer products companies.

“We are pleased to welcome these outstanding professionals as part of Jefferies’ broad and growing commitment to the consumer sector,” commented Richard B. Handler, Chairman and CEO of Jefferies. “We plan to continue adding to our firm’s consumer focus over the next several months with a number of additional senior research and investment banking professionals."

“Doug Lane and Dan Binder are top-rated analysts who bring to Jefferies both their extensive experience covering the consumer category and their deep-rooted relationships with corporates and their investors,” said Steven R. Black, Director of Equity Research at Jefferies. “They represent significant additions to our consumer research practice, are part of the ongoing buildout of our overall research effort, and enhance our mission to provide must-read research to our institutional client base.”

Mr. Binder commented: “I am pleased to be a part of the fast-growing consumer research effort at Jefferies and look forward to integrating my franchise into this talented group.”

“I look forward to joining Jefferies’ award-winning research practice and bringing my insight and perspective to the Firm’s consumer-centric institutional investors,” added Mr. Lane.

Jefferies’ broad equity research effort has received key industry accolades, ranking among the Top 5 research teams for the second time in three years in The Wall Street Journal “Best on the Street” 2007 Analysts Survey, with a total of seven awards. The Firm also earned a total of nine analyst honors in StarMine’s 2007 Analyst Survey. Jefferies and its affiliates now have more than 130 equity and high yield research professionals in the US, Europe and Asia covering over 1,300 companies in the areas of aerospace and defense, business, consumer, financial and IT services, clean technology, energy, gaming & lodging, healthcare, industrial, media and entertainment, shipping, technology, and telecommunications.

Prior to joining Jefferies, Mr. Binder was most recently a Senior Vice President and Partner at The Buckingham Research Group, covering broadline and specialty hardline retailing industries. He also covered broadline and specialty hardline retailing as a Senior Analyst at Brown Brothers Harriman & Co. Mr. Binder began his career in retail equity research at Morgan Stanley Dean Witter. He has been twice rated as a top analyst in The Wall Street Journal “Best on the Street” Analyst Survey, in both 1999 and 2005. Mr. Binder has a BS in Finance from St. John’s University and is also a CFA charterholder.

Mr. Lane was a Managing Director and consumer products equity analyst at Avondale Partners for five years. He spent the preceding nine years with Merrill Lynch covering cosmetics and household products, and beverage products. He began his career as an Equity Analyst at PNC Bank. Mr. Lane has ranked as a top analyst in the 2005, 2006 and 2007 “Best on the Street” Analyst Survey by The Wall Street Journal, as well as in the 2004 and 2006 Forbes/Starmine analyst awards. He has an MBA in Finance from Loyola College and a BSBA in Management Systems and Economics from University of Richmond, and is also a CFA charterholder.

Messrs. Binder and Lane will be based in Jefferies' New York headquarters office and Boston office, respectively.


About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for nearly 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 & Prosek, 203 378 1152, x149, tmiller@cjpcom.com