Jefferies Hires Additional Senior Investment Banker in Energy Group.

Veteran George Hutchinson Enhances Jefferies Randall & Dewey Energy Capital Markets Practice

NEW YORK & HOUSTON -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of George Hutchinson as a Managing Director in the Firm's Energy Investment Banking Group, Jefferies Randall & Dewey. Mr. Hutchinson has more than 25 years of experience in energy finance as both an investor and in a capital raising role, most recently with Friedman Billings Ramsey.

"George Hutchinson's E&P experience and capital markets expertise are a strong complement to our industry-leading energy practice," commented Richard B. Handler, Chairman and CEO of Jefferies. "This addition demonstrates Jefferies' deep commitment to this thriving area of the global economy and to our overall focus on serving growth energy and alternative energy companies."

"We are delighted to welcome George Hutchinson as a new member of our team," added Ralph Eads, Co-President of Jefferies Randall & Dewey. "The depth and longevity of his relationships and extensive experience on both the sellside and buyside will add valuable insight and perspective for our clients."

"The reputation of Jefferies Randall & Dewey as a leading global energy advisor with full-service investment banking capabilities attracted me to the Firm," said Mr. Hutchinson. "The Jefferies Randall & Dewey platform allows me to better meet the advisory, M&A, debt, public equity and private equity needs of my current and future clients. The Firm's intellectual capital and experienced technical group can produce insightful and creative financial solutions for our clients."

With more than 100 professionals working on active engagements, Jefferies Randall & Dewey provides a full range of investment banking services to growing companies in the global energy sector. The Firm serves an international client base that includes multinationals and major integrated companies, national oil companies and public and private independents, including Anadarko Petroleum Corporation, Statoil and Plains Exploration & Production. In 2006, Jefferies Randall & Dewey completed over 40 energy transactions, valued at over $9 billion, and ranked as a leading M&A energy advisor, according to Thomson Financial.

Jefferies' broader focus on the energy and alternative energy / clean technology sectors includes a team of dedicated securities traders, as well as fourteen senior research analysts in equity, high yield and convertible securities covering exploration and production, oil services and drilling, shipping, logistics, energy transportation, gas utilities, electric utilities, and emerging technologies in the nuclear, solar and wind industries, as well as batteries and fuel cells.

Leveraging its deep coverage of growing companies in the energy and alternative energy / clean technology sectors, Jefferies recently launched a number of equity indices benchmarking emerging opportunities in oil & gas, oil services and maritime shipping, as well alternative energy and clean technology. These include, among others, the Jefferies North American Small/Midcap E&P Index(SM), the Jefferies Global Oil Service Index(SM), the Jefferies Global Drilling Contractor Index(SM), the Jefferies US Tanker Index(SM) and the Jefferies Global Clean Technology Index(SM), a composite index of nearly 50 leading small- and mid-cap companies engaged in clean technology worldwide.

As an investment banker, Mr. Hutchinson has worked with companies and investors in high profile engagements including the $800 million Rosetta Resources 144a transaction, the Aventine Renewable Energy 144a transaction, Petrohawk, and many others. Prior to joining Jefferies, Mr. Hutchinson was a Managing Director at Friedman Billings Ramsey, where he headed that firm's Houston office. On the buyside, he spent thirteen years with The Trust Company of the West - TCW Asset Management Co., where he was Managing Director and Senior Portfolio Manager, and head of that firm's Houston office. Mr. Hutchinson was also the Senior Corporate Finance Officer for Huntington Bancshares and an energy and international executive at National Westminster Bank USA. He holds a BSBA from the Boston University School of Management.

Mr. Hutchinson will be based in the Firm's Houston office and will report to Mr. Eads and Claire S. Farley, Co-Presidents of Jefferies Randall & Dewey.

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 30 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).

Founded in 1989, Jefferies Randall & Dewey serves an international client base that includes multinationals and major integrated enterprises, national oil companies and public and private independent exploration and production companies. With offices in Houston, London and Calgary, Jefferies Randall & Dewey's team of more than 100 M&A specialists, finance professionals, geoscientists and engineers is among the largest, most experienced advisory groups dedicated to the Energy industry.