Jefferies Appoints New Head of European High Yield Sales & Trading.

Kenton Jernigan Hired to Lead Effort and Enhance Firm's Capital Markets Platform Focused on Growth Companies in Europe

LONDON & NEW YORK -- Jefferies International Ltd., a subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of Kenton Jernigan, who joins as Managing Director and head of the firm's European institutional high yield and distressed securities sales and trading effort.

Mr. Jernigan will be responsible for expanding Jefferies' European presence in high yield and distressed securities to complement the firm's leading U.S. business in the same area. A 15-year veteran of the financial services industry, Mr. Jernigan's experience spans the U.S. and Europe at firms including Goldman Sachs, Lehman Brothers, SG Cowen and, most recently, Calyon Bank. Mr. Jernigan has focused on European High yield for the past decade, with expertise in new issues, long only, proprietary and hedge funds, as well as distressed sourcing.

A top provider of execution and liquidity in small and mid-cap securities, Jefferies has expertise in equity, convertible, high yield and other fixed income securities, as well as derivatives, options, ETFs and commodity-linked products. Jefferies is a recognized leader in high yield finance, having a team of more than 50 professionals with integrated sales, trading, research and capital markets capabilities in both the U.S. and UK.

The Firm is a top trader in the secondary high yield and distressed markets, regularly trading in more than 1,000 issues with over 300 institutions globally. Jefferies has maintained leadership as an underwriter of U.S. single-B high yield new issues under $150 million for nearly five years running (Thomson Financial, 2001-3Q 2006), and the Firm established its dedicated European high yield sales and trading effort in 2004.

"Kenton Jernigan's experience and established relationships in the high yield and distressed securities market significantly enhances Jefferies' continued expansion in European leveraged finance," said Clifford A. Siegel, Chief Executive of Jefferies International Ltd. "He will continue the build-out of Jefferies' secondary trading business and institutional platform for the distribution of new issues for growing and mid-sized companies in Europe."

"We are excited to welcome a senior professional of Kenton Jernigan's caliber to our team," added David W. Schwartz, Head of Jefferies U.S. High Yield Sales and Trading Division, Jefferies & Company, Inc. "The continued expansion of our high yield platform serving European clients is critical to the firm's overall sales and trading effort."

"Jefferies' leadership in high yield and the firm's focus on growing and mid-sized companies were key factors in my decision to lead the firm's European high yield sales and trading effort," commented Mr. Jernigan. "The opportunity in this market is vast for a thriving investment bank like Jefferies."

Mr. Jernigan joins Jefferies from Calyon Bank, where he was Managing Director in charge of European high yield distribution. Previously, Mr. Jernigan worked in a similar capacity with Tower Bridge Securities (formerly ITD Capital Markets), a subsidiary of Cantor Fitzgerald, for three years, and founded the institutional distressed and high yield bond business at that firm. He also served as Director and Head of European High Yield Bond Sales in SG Cowen's London and New York offices. In New York, Mr. Jernigan held associate positions in the Global Investments group at Lehman Brothers and Money Market Sales group at Goldman Sachs. He holds a Bachelor of Science from Harvard University and is a CFA.

Mr. Jernigan will be based in the firm's London office, where Jefferies has more than 250 employees, including over 50 investment banking professionals.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for nearly 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 International Limited, a UK-incorporated, wholly owned subsidiary of US-based Jefferies Group, Inc. (NYSE: JEF; www.jefferies.com), was established in London in 1985 and is authorized and regulated by the Financial Services Authority ("FSA").