Jefferies to Open Frankfurt Office in Continued Global Expansion

Jefferies announced today that it intends to open a new office in Frankfurt, Germany as the next step in the Firm’s ongoing expansion and to extend its global investment banking services into Germany. Jefferies is a leading financial advisor, underwriter and institutional securities firm, serving growing companies and their investors worldwide. Jefferies’ German office will be co-led by managing directors Richard Markus and Warren Scott, who are joined by fellow managing directors Martina Ecker, Alexander Mueller and Peter Beusch, as well as directors Christian Muthler and Matthias Eisfeld. Together with additional investment bankers and appropriate support staff, the team expects to expand the total Frankfurt office headcount to approximately 25 employees shortly after opening. This group of experienced and senior professionals will manage corporate relationships regionally, initiating and executing transactions to meet client objectives, as well as cover private equity, venture capital and other financial sponsors in Germany. Industry and product expertise will be supported from Jefferies’ offices in London and the U.S., where the Firm provides growing and mid-sized companies with advisory and underwriting services through M&A, leveraged finance, commercial lending, equity and equity-linked financing, fund placement and restructuring solutions. As Jefferies continues to pursue its growth strategy, the Firm intends to extend globally its strong US franchise as the investment bank of choice for growing companies and their investors. In addition to this intended expansion into Germany, Jefferies recently announced the acquisition of LongAcre Partners, a leading, London-based corporate advisory firm focused on the European media and online sector, as well as the acquisition of the Putnam Lovell investment banking business, a leading adviser to the financial services sector operating from London, New York and San Francisco. Earlier this year, the Firm also appointed David Weaver as Head of International Investment Banking based in London. Richard Handler, Chairman and CEO of Jefferies, commented: "Jefferies' full-service capabilities and multi-industry expertise are well-suited for opportunities in the German market, and these experienced individuals bring with them meaningful relationships that will enhance our firm’s European presence and overall scalability. A Frankfurt office, in addition to this past month’s acquisitions of LongAcre Partners and Putman Lovell, increases the number of Jefferies investment banking professionals by more than ten percent and continues the expansion of our increasingly global practice, a key component of Jefferies’ overall growth strategy. We are very excited to welcome our new partners.” David Weaver, Head of International Investment Banking said: "These talented professionals will enable Jefferies to have an immediate and strong presence in a fully-operational office in this key European market. The cross-border nature and multi-faceted needs of growing companies throughout Europe are well-served by the global capabilities of Jefferies, including our advisory expertise and array of capital raising options.” Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for 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). Jefferies has been operating outside the U.S. for over 20 years and provides a full-service offering to growing and mid-sized companies and their investors on a global basis. The Firm has a network of offices in leading financial centers in Europe and Asia, including London, Paris, Zurich, Tokyo, Shanghai, Singapore and Dubai, with a support office in Hong Kong and pending registration in New Delhi. The Firm provides a range of investment banking services in a number of global growth sectors including aerospace and defense, technology, energy, healthcare, industrial and others. Jefferies is also a leader in the sale of global equities, convertible and high yield bonds, providing a variety of leading-edge solutions in sales, trading, analysis and investment management. Jefferies worked on more than 350 transactions worth over $145 billion during 2006, with 165 debt and equity capital raisings and 190 merger, acquisition and restructuring engagements, including more than 80 transactions worth over $23 billion for European and Asian companies. The German financial market has long been served by Zurich-based Jefferies (Switzerland) AG for asset management and securities brokerage services, including U.S. equities. The Frankfurt office will be a branch of Jefferies International Limited. Jefferies International Limited is a member of the London Stock Exchange with Nomad accreditation on the Alternative Investment Market (AIM), and is also a member of the Deutsche Börse (Xetra electronic trading platform), Euronext, Oslo Bors and Dubai International Financial Exchange (DIFX). Richard Markus, Managing Director, commented: "We are delighted to be joining a Firm with such a unique franchise in the mid cap market and with specific strengths in sectors such as industrials, automotive, technology and telecoms, media, consumer, aerospace and defence, healthcare, cleantech and logistics. The combination of our team with Jefferies existing resources will create a new, innovative and valuable capability for mid-sized German companies and their investors.” Warren Scott, Managing Director, added: "Mid-sized corporates and financial sponsors in Germany have typically had little access to the sort of investment banking advice and products that a global specialist like Jefferies can offer. The expertise, global reach and sector knowledge that Jefferies offers provides great opportunities to German companies with international ambition both in M&A and capital markets.” Notes to Editors Richard Markus joins as Managing Director and Co-head of Investment Banking, Germany, from KPMG where he was a partner in KPMG’s European Corporate Finance practice for nearly 10 years based in Frankfurt and Berlin. Richard has over 15 years of investment banking experience in the German market. He began his career with KPMG in London in 1987 and in 1992, he moved to Berlin to set up KPMG’s first dedicated M&A team in Germany where he focused primarily on transactions in the industrials sector and private equity. Recent transactions include the sale of 76% of the quoted share capital of Klöckner Werke AG to Salzgitter AG on behalf of the administrator of WCM AG and the € 300 Mio acquisition of Coperion on behalf of Deutsche Beteiligungs AG. Richard’s private equity clients included Barclays, Bridgepoint, HG Capital, Quadriga, Deutsche Beteiligungs AG, GBCP, ECM and Afinum. Richard is both a Chartered Accountant and Wirtschaftsprüfer and he graduated from Exeter University with a BA in Economics and Accounting. Warren Scott joins Jefferies as Managing Director and Co-head of Investment Banking, Germany. Warren was previously a Partner at KPMG for 10 years in the European Corporate Finance practice, based in both London and Frankfurt. He joined KPMG in 1993 and went on to set up KPMG’s M&A team in Frankfurt in 1997. Previously, he worked for JP Morgan and Guinness Mahon &Co in London having qualified as a chartered accountant with KPMG in 1987. With over 20 years of investment banking experience, Warren has worked on numerous public and private mid-market transactions in both Europe and the US. He has advised a broad range of corporate and financial sponsors and, over the last 7 years, he was instrumental in creating KPMG's European financial sponsors coverage practice. Clients advised include Xerox, Masco, Whitbread, Kingfisher, Macquarie GPA and Tishman Speyer and private equity clients include 3i, Hg Capital, European Capital, Cognetas and PPM. Warren is a Chartered Accountant and he graduated from Loughborough University with a BSc in Accounting and Financial Management. Martina Ecker joins Jefferies as a Managing Director. Martina was previously a partner with KPMG in the Corporate Finance division heading the European Corporate Finance Technology team. Before joining KPMG in 1998, she worked at M&A Bank, a Vienna based investment bank specializing in M&A, and before then the finance department of Procter & Gamble. Martina has worked on numerous cross-border transactions and has extensive expertise in both acquisition and disposal engagements. She has worked across a range of industries and has predominately focused on software and IT services transactions where she advised multi-nationals including Computacenter, Getronics and T-Systems. Recent public transactions include the recent take-over of AAA Allgemeine Anlageverwaltung by Tishman Speyer. Martina holds a PhD in Economics and Business Administration from Vienna University. Alexander Müller joins Jefferies as a Managing Director from KPMG, where he was the Partner responsible for chemicals, logistics and support service industries in Europe. Alexander also led KPMG´s German IPO advisory services team. He joined KPMG in Berlin in 1992 and in 2003 he moved to Düsseldorf to open the M&A office which he led until his departure. Alexander has been an investment banking professional for 15 years and holds an MBA from the University of Münster. Peter Beusch, joins Jefferies as a Managing Director from KPMG in Berlin. Peter has been an investment banking professional for 12 years and most recently was the Partner responsible for covering the media sector and financial sponsors in Munich. Peter has advised on more than 40 national and international transactions including the sale of Scout24 AG, idealo AG, Frankfurter Rundschau and Otto Schmidt Verlag. He holds an MBA from the University of Bayreuth. Christian Muthler, joins Jefferies as a Director from KPMG Corporate Finance where led the automotive sector team and worked for a number of financial sponsors. He recently advised on the acquisition of Coperion for DBAG and the sale of Sport Group for ECM to IndustriKapital. His financial sponsor clients included Granville Baird Capital Partners, ECM, DBAG and Quadriga Capital. Christian has more than 10 years of investment banking experience and he holds an MBA from the University of Augsburg. Matthias Eisfeld, joins Jefferies as a Director from KPMG where he was a Director covering the industrials sector. Matthias was also responsible for developing KPMG´s IPO advisory services practice and has advised on a wide range of transactions including the IPOs of Infineon, Lanxess and DFAG. Matthias has been an investment banking professional for 10 years and holds an MBA from the University of Frankfurt. About Jefferies Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for 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). Jefferies International Limited, a UK-incorporated, wholly owned subsidiary of Jefferies Group, Inc., was established in London in 1985 and is authorized and regulated by the Financial Services Authority ("FSA").Jefferies International Limited is a member of the London Stock Exchange and has Nomad accreditation on the Alternative Investment Market (AIM), and is also a member of the Deutsche Börse (Xetra electronic trading platform), Euronext, Oslo Bors and Dubai International Financial Exchange (DIFX). Jefferies (Japan) Limited is a member of the Tokyo Stock Exchange and Jasdaq Securities Exchange. Special Note on Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements about our future and statements that are not historical facts. The forward-looking statements in this release pertain to the future development and expansion of our international investment banking business. Forward-looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. The use of these forward-looking statements does not infer that the results will be achieved. It is possible that the actual results may differ materially from the anticipated results indicated in these forward-looking statements. Please refer to our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2007 for a discussion of important factors that could cause actual results to differ materially from those projected in these forward-looking statements.