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JEFFERIES 2009 EUROPEAN IPO INVESTOR SURVEY FINDS THAT
IPO MARKET IS EXPECTED TO RE-OPEN BY MID 2010

One Quarter of Investors Expect European IPO Activity to Return by Year End

LONDON and FRANKFURT, 28 July 2009 – Jefferies International Limited, the UK subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the findings of the Jefferies 2009 European IPO Investor Survey which was designed to gauge the views of the European institutional investor community on the prospects of a revival of the European IPO market. Respondents included analysts, portfolio managers, and dealers from over 40 European-based institutions.

Rupert Mitchell, Head of Equity Capital Markets, Jefferies International, commented
"The response to the survey is encouraging and suggests that European investors expect the recovery of the IPO market to take effect as early as the end of this year. Positive investor sentiment is buoyed in part by the performance of equity markets in recent months as well as primary market activity that is becoming more oriented towards growth. In fact, early signs from the US IPO market and responses from the survey indicate the early wave of European issuance could have a growth bias."

Key Findings

Investors are bullish about the re-opening of the European IPO market
  • 83% of participants see the IPO market re-opening in the UK and Continental Europe by the middle of 2010, with 23% expecting the IPO market to re-open by the end of 2009.
  • The continued decline of equity market volatility and company rescue financings were noted as "key" to renewed IPO activity.
  • Only half of the respondents see GDP growth as a pre-cursor to renewed IPO activity.
Opinion is divided as to whether classic growth companies or more defensive growth investment stories will dominate the early part of the IPO cycle
  • 40% of respondents believe that classic growth stories, similar to the deals priced in the US with their tech themes, will be best received at the early part of the cycle. However, 46% believe that more defensive growth companies will dominate.
Most respondents stated that profitability was not a pre-requisite to investing in an IPO
  • Half of the respondents stated that profitability was not required at IPO stage, as long as there was a clear path to profitability defined as being one to two years away.
  • However, nearly one third of investors stated that they would only buy shares in the IPO of a profitable company.
Institutional investor interest in IPOs starts to become significant at the US$100 million deal size
  • Liquidity still pre-occupies institutional investors, but there is a willingness to engage in IPOs with at least US$100 million of expected free-float
The survey comprised a web-based series of multiple-choice questions that respondents selected. The survey was distributed by Jefferies' European equity sales and equity research teams to European institutional investors. The survey was carried out by members of the Investment Banking department of Jefferies International and is not and should not be construed as investment research.

About Jefferies

Jefferies, a major global securities and investment banking firm, has served companies and their investors for more than 45 years. Headquartered in New York City, with offices in more than 25 cities around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF: www.jefferies.com). Jefferies International Limited, a UK-incorporated, wholly owned subsidiary of Jefferies Group, Inc., is authorised and regulated by the UK Financial Services Authority.

For further information please contact:
Tom Tarrant, Jefferies & Company, Inc., 203 708 5989, ttarrant@jefferies.com
Desiree Maghoo, Jefferies International Limited, +44 20 7029 8085, dmaghoo@jefferies.com