Indices

Jefferies Re-Org Index^SM

JEFIREOP (index price) JEFIREOT (total return)

The purpose of the Jefferies Re-Org Index^SM is to track returns for newly emerged post-reorganization (i.e., post-Chapter 11) equities that have effected a re-characterization of equity ownership through the bankruptcy process, within the 2- year period after bankruptcy emergence. This benchmark index is intended to be used by Jefferies' post-reorganization clients and other participants for this unique investment category. The eligible constituents are selected in consultation with Jefferies equity research analysts (subject to market capitalization, liquidity, and other requirements) to provide appropriate representation of post-reorganization companies. The methodologies for index construction and the universe of eligible constituents are defined by Jefferies in consultation with Standard & Poor's, while the calculation and maintenance of the index are completed by Standard & Poor's.

Index Methodology (pdf)

Index Total Return Performance

S&P 500 index was set to 100 as of base date 12/31/2002 for comparison purposes.

Closing Price
Date	07-24-08
Price	230.78

Historical Values
	Closing Prices
	Total Returns

Current Constituents and Weighting (last updated 07-24-08)

Company	Ticker	Weighting
Northwest Airlines Corp	NWA	11.6%
Silicon Graphics Inc	SGIC	11.3%
Delta Air Lines Inc	DAL	11.1%
Armstrong World Industries	AWI	9.6%
Winn-Dixie Stores Inc	WINN	9.3%
Owens Corning, Inc	OC	9.1%
Dana Corp/New	DAN	8.8%
Solutia Inc	SOA	8.4%
Kaiser Aluminum Corp	KALU	7.7%
Calpine Corp	CPN	6.7%
FEDERAL MOGUL CORP CL A-W/I	FDML	6.5%

Sector Composition (last updated 07-24-08)

	Industrials - 41.4%
	Materials - 16.1%
	Information Technology - 11.3%
	Consumer Staples - 9.3%
	Other - 8.8%
	Utilities - 6.7%
	Consumer Discretionary - 6.5%

Sector Composition follows the Global Industry Classification System (GICS).

The Jefferies Re-Org Index^SM is the exclusive property of Jefferies & Company, Inc. Jefferies & Company has contracted with Standard & Poor's to maintain and calculate the index. Jefferies & Company and S&P shall have no liability for any errors or omissions in calculating the index.

All performance information presented above for any Jefferies Index is provided strictly for educational and illustrative purposes only. All historical data for the Jefferies Indices are estimations using sources believed to be reliable; however, none of Jefferies, Standard & Poors or any of their subsidiaries or affiliates makes any representations as to the accuracy, timeliness or completeness of any index data. The information provided is not intended for trading purposes, and should not be considered investment advice. You cannot invest directly in an index. This information, including all Jefferies Stock Indexes and materials relating thereto, is the property of Jefferies & Company ("Jefferies") and may not be used to create, offer, trade, market or promote any financial products without the express written consent of Jefferies. Jefferies and its affiliates and their respective directors, officers and employees may buy or sell securities mentioned or contemplated herein as agent or as principal for their own account and may have positions or engage in transactions based on or indexed to any Jefferies Stock Indexes. It is possible that Jefferies' trading activity will affect the value of Jefferies Stock Indices. This is not an offer or solicitation of an offer to buy or sell any security or investment. Past performance of any Jefferies Index is not necessarily indicative of future results.