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JEFFERIES APPOINTS NEW HEAD OF AEROSPACE & DEFENSE INVESTMENT BANKING EFFORT

Industry Veteran David Baxt Enhances Firm's Capital Markets And Financial Advisory Platform Focused On Global Aerospace, Defense, Federal IT And Homeland Security

NEW YORK, May 5, 2008 -- The Jefferies investment bank today announced the appointment of David P. Baxt as head of the Firm’s leading aerospace and defense investment banking effort, Jefferies Quarterdeck. Mr. Baxt was most recently a senior managing director and co-head of aerospace and defense investment banking at Bear Stearns, where he worked for more than fifteen years. He will join Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), as a Managing Director during the third quarter.

Having completed aerospace and defense transactions valued at more than $100 billion, Mr. Baxt has extensive capital markets and advisory experience working with high profile companies, including DRS, L3 Communications, Lockheed Martin, Raytheon, General Dynamics and Cobham PLC. He joins the Firm’s established industry team of approximately 25 dedicated investment banking professionals based in New York, Washington DC, London and Los Angeles, focused on the global aerospace, defense, federal IT and homeland security sectors.

“David Baxt has the knowledge, experience and relationships to build upon our leadership position in this vital segment of the global economy,” commented Chris M. Kanoff, Co-Head of Investment Banking at Jefferies. “Aerospace and defense is a key component of our broader focus on industrial companies and our multi-sector platform.”

"I look forward to joining Jefferies’ very successful team and driving the Firm’s continued leadership in aerospace and defense investment banking,” added Mr. Baxt.

Jefferies’ aerospace and defense investment banking effort, established in 2002, has ranked as the top M&A advisor in the sector for the past three years, according to Thomson Financial. In 2007, this team completed nearly 40 transactions, valued at $6.7 billion, including the top two M&A Big Impact Deals of the Year, as ranked by industry publication Washington Technology.

Mr. Baxt graduated magna cum laude with a BS in Economics from The Wharton School at the University of Pennsylvania.


About Jefferies

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