Jefferies Smallcap and Midcap Short Interest Indices

The Jefferies Smallcap and Midcap Short Interest Indices are intended to reflect the performance of the most heavily shorted stocks in the market. The 25 companies with the greatest short interest as a percent of total shares outstanding are added to the index each quarter, based on the most recent available data, and remain in the index for the following quarter. The indices include companies within the following market capitalization ranges:

• Jefferies Smallcap Short Interest Index^SM – Market capitalization of $300 million – $2 billion
• Jefferies Midcap Short Interest Index^SM – Market capitalization of $2 billion – $10 billion

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 indices are completed by Standard & Poor's.

Jefferies Smallcap Short Interest Index^SM

JEFISSIP (index price) JEFISSIT (total return)

Index Methodology (pdf)

Index Total Return Performance

Closing Price Date 09-05-08 Price 113.25

Historical Values Closing Prices Total Returns

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

Company	Ticker	Weighting
JetBlue Airways Corp.	JBLU	6.8%
Beazer Homes USA	BZH	6.4%
Jones Apparel Group	JNY	6.1%
Human Genome Sciences	HGSI	5.3%
Palm Inc.	PALM	5.1%
Dendreon Corp	DNDN	5.1%
RF Micro Devices, Inc.	RFMD	4.8%
Bearingpoint Inc	BE	4.7%
Hovnanian Enterprises Inc.	HOV	4.6%
PMC-Sierra Inc.	PMCS	4.5%
Cincinnati Bell Inc.	CBB	4.4%
Medarex Inc	MEDX	4.2%
Big Lots, Inc.	BIG	4.2%
USEC Inc	USU	4.1%
E*Trade Financial Corp.	ETFC	4.1%
Blockbuster Inc A	BBI	4.1%
Take-Two Interactive Software	TTWO	3.9%
Grey Wolf Inc	GW	3.9%
3Com Corp.	COMS	3.9%
Sonus Networks Inc	SONS	3.2%
UTStarcom	UTSI	2.4%
Coeur d'Alene Mines	CDE	2.3%
Circuit City Group	CC	1.9%

Sector Composition (last updated 09-05-08)

Information Technology - 32.5%    Consumer Discretionary - 27.2%    Health Care - 14.5%    Energy - 8.1%    Industrials - 6.8%    Telecommunication Services - 4.4%    Financials - 4.1%    Materials - 2.3%

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

The Jefferies Smallcap Short Interest 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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Jefferies Midcap Short Interest Index^SM

JEFIMSIP (index price) JEFIMSIT (total return)

Index Methodology (pdf)

Index Total Return Performance

Closing Price Date 09-05-08 Price 205.20

Historical Values Closing Prices Total Returns

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

Company	Ticker	Weighting
Ambac Financial Group	ABK	14.7%
MBIA Inc.	MBI	10.5%
Delta Air Lines Inc	DAL	5.5%
RadioShack Corp	RSH	5.0%
Pulte Homes, Inc.	PHM	4.6%
Eastman Kodak	EK	4.3%
Tenet Healthcare Corp.	THC	4.2%
Masco Corp.	MAS	3.9%
Mylan Inc.	MYL	3.7%
D.R. Horton	DHI	3.6%
Interpublic Group	IPG	3.5%
CarMax Inc.	KMX	3.5%
Level 3 Communications	LVLT	3.3%
LSI Corporation	LSI	3.3%
Lennar Corp.	LEN	3.1%
On Semiconductor Corp	ONNN	3.1%
Advanced Micro Devices	AMD	3.0%
Nuance Communications	NUAN	3.0%
New York Community Bancorp	NYB	3.0%
MARVELL TECHNOLOGY GROUP LTD	MRVL	2.5%
Sirius XM Radio Inc	SIRI	2.3%
Mirant Corp	MIR	2.3%
Micron Technology	MU	2.1%
Rite Aid	RAD	2.0%

Sector Composition (last updated 09-05-08)

Consumer Discretionary - 30.0%    Financials - 28.1%    Information Technology - 17.0%    Industrials - 9.4%    Health Care - 7.9%    Telecommunication Services - 3.3%    Utilities - 2.3%    Consumer Staples - 2.0%

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

The Jefferies Midcap Short Interest 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.