Jefferies Smallcap Biopharma Index^SM

JEFISBPP (index price) JEFISBPT (total return)

Jefferies Smallcap Biopharma Index^SM is intended to reflect the stock performance of smallcap biotech and pharmaceutical stocks listed on the Nasdaq, NYSE and AMEX with market capitalization between $100 million and $1 billion. The eligible constituents follow the definitions presented by the Global Industry Classification Standard ("GICS") sub-industries Biotechnology and Pharmaceuticals. The constituents are then subject to market capitalization and liquidity requirements. 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 09-05-08 Price 143.02

Historical Values Closing Prices Total Returns

Current Constituents and Weighting (last updated 09-05-08)

Company	Ticker	Weighting
ALPHARMA Inc.	ALO	4.8%
Medicines Company	MDCO	4.0%
Martek Biosciences	MATK	3.7%
ViroPharma Inc	VPHM	3.2%
Sciele Pharma, Inc.	SCRX	3.1%
Incyte Corporation	INCY	3.0%
Acorda Therapeutics Inc	ACOR	3.0%
Savient Pharmaceuticals	SVNT	2.9%
Rigel Pharmaceuticals Inc	RIGL	2.8%
Cv Therapeutics Inc	CVTX	2.2%
Seattle Genetics Inc /Wa	SGEN	2.0%
Halozyme Therapeutics Inc Com	HALO	1.9%
Vivus Inc	VVUS	1.9%
Intermune Inc	ITMN	1.8%
Par Pharmaceutical Cos.	PRX	1.8%
Dendreon Corp	DNDN	1.7%
Durect Corporation	DRRX	1.4%
Arena Pharmaceuticals Inc	ARNA	1.4%
Allos Therapeutics Inc	ALTH	1.2%
Progenics Pharmaceuticals Inc	PGNX	1.2%
Geron Corp	GERN	1.1%
NPS Pharmaceuticals	NPSP	1.1%
Sangamo BioSciences Inc	SGMO	1.1%
Gtx Inc	GTXI	1.0%
Questcor Pharmaceuticals Inc Com	QCOR	1.0%
View all constituents

The Jefferies Smallcap Biopharma IndexSM 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.

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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.