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JEFFERIES ENHANCES CASH EQUITIES EFFORTS ACROSS TRADING, SALES TRADING AND RESEARCH SALES

Firm Adds Seven Experienced Professionals; Appoints Head Of Consumer Trading

NEW YORK, October 11, 2007 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of seven experienced trading, sales trading and research sales professionals. These additions are part of the Firm’s ongoing expansion of its cash equities business.

In a joint statement, Jason D. Griffith and Ross L. Stevens, Co-Heads of the Firm’s Equities Department, commented: “Jefferies is committed to expanding our cash equities business and augmenting our resources in strategic areas. The addition of these seven experienced professionals not only reflects this commitment, it also demonstrates the energy and momentum of our platform and our firm’s ability to attract individuals of such a high caliber. We are confident that our new partners will make meaningful contributions to our overall equities efforts.”

Rhys Brooks joins as Managing Director and Head of Consumer Trading. Mr. Brooks has nearly fifteen years of trading experience at leading firms, including six years with Merrill Lynch and seven with Thomas Weisel Partners. At the latter firm, he was most recently co-head of cash trading and led the Consumer NASDAQ / Listed desk. He will be based in the Firm’s New York headquarters and has a BA from Lynchburg College.

Neil Higgins joins as a Managing Director and Research Salesperson in the Firm’s Boston office. Mr. Higgins was most recently a managing director and regional director of institutional sales at Piper Jaffray, also in Boston. Previously he was a vice president in institutional equity sales at Bank of America Securities. Mr. Higgins has a BA from University of Notre Dame and a JD from University of Virginia.

Joseph “Trey” E. Laird III joins as a Senior Vice President and Sales Trader in the Firm’s New York headquarters. He has more than 14 years of experience, most recently as a managing director at Piper Jaffray. Previously he was a vice president in equity sales trading at Hambrecht & Quist. Mr. Laird has a BA from Dartmouth College.

Donald J. O’Shaughnessy, Jr. joins as a Senior Vice President and Sales Trader in the Firm’s Chicago office. He has more than twenty years of experience in institutional equities with a focus on cash equities and options, most recently as head of Susquehanna Financial Group’s Chicago-based sales trading efforts. Previously, he was a vice president at Goldman Sachs, where he worked for ten years.

John C. Riedel joins as a Senior Vice President and Sales Trader in the Firm’s San Francisco office. He has more than a decade of experience, most recently as head of the San Francisco-based sales trading efforts at Wachovia Securities. Mr. Riedel has a BS in Finance from the University of Colorado at Boulder.

Michael A. Spataro joins as a Senior Vice President and Research Salesperson in the Firm’s New York headquarters. Previously, he was an institutional salesperson at AG Edwards where he worked for the past seven years. Prior to his career in the securities industry, he worked as an attorney. Mr. Spataro has a BA from St. John's University and a JD from New York Law School.

Michael J. Wharry joins as a Senior Vice President to lead the Firm’s Dallas-based research sales efforts. He has 14 years of experience, including nine on the sellside at firm’s including Chase Bank, CIBC World Markets, Credit Suisse First Boston and Lehman Brothers, where he was most recently a senior vice president and research salesperson. Mr. Wharry also has five years of experience on the buyside at Employee Retirement Systems of Texas and Teacher Retirement System of Texas. Mr. Wharry has a BA in Finance from University of Texas at Austin.

Jefferies has one the largest institutional sales forces on Wall Street and is a leading provider of trade execution and liquidity for small- and mid-cap securities. The Firm’s broader Equities effort includes electronic trading, derivatives, structured products, prime brokerage, securities finance, award-winning research and a growing capital markets practice. The firm’s equity research team recently ranked among the Top 5 on Wall Street 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, and covers nearly 850 companies globally.

About Jefferies

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