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JEFFERIES ANNOUNCES FORMATION OF STRUCTURED EQUITY GROUP

Team To Focus On Alternative Equity Investments

NEW YORK, December 17, 2007 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the formation of a dedicated Structured Equity Group within the Firm’s broader equity capital markets effort. The new group has been established to further enhance Jefferies’ product offerings in the private equity and alternative asset category, and will be led by Managing Director Charles E. Mather, who joined the Firm earlier this year. Mr. Mather has more than 20 years of experience in structuring and investing in alternative investments, and was previously head of the private equity group at Cowen & Company.

Jefferies’ Structured Equity Group will initially focus on originating and executing equity private placements for private and public companies as well as public equity offerings for Special Purpose Acquisition Companies (SPACs). The team includes Senior Vice President Abi Subramanian and Vice President Mark Weissman. Mr. Subramanian, who also joined the Firm earlier this year, has more than thirteen years of investment banking and private equity experience, most recently as senior vice president and group head of equity private placements at Stanford Group, Cowen & Company, where he worked with Mr. Mather for seven years, and ING Barings Furman Selz LLC. Mr. Weissman joined Jefferies in 2001 and previously worked in the investment banking department of Prudential Securities.

“The establishment of a dedicated Structured Equity Group will enhance the breadth of our equity capital markets capabilities and our ability to provide a more targeted offering for our private equity clients and those interested in alternative investments,” commented Tim Monfort, Head of Equity Capital Markets at Jefferies. “I am confident that this new initiative will have an immediate and strong impact on our ability to offer creative solutions to our clients.”

“I am excited to build this initiative as part of the Firm’s broader equities effort,” added Mr. Mather. “Structured equity and SPACs are attractive investment options for institutional investors and complement the Firm’s comprehensive range of products and services.”

Jefferies Structured Equity Group is based in the Firm’s New York headquarters office. In addition to public and private equity underwriting, Jefferies’ broader equities effort includes cash equities, electronic trading, derivatives, structured products, prime brokerage, securities finance, and award-winning research.


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
Josh Passman, Cubitt Jacobs & Prosek, 212 279 3115, x203, jpassman@cjpcom.com