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JEFFERIES HIRES ADDITIONAL SENIOR RESTRUCTURING BANKER

Industry Veteran Frank Merola Joins As Managing Director

NEW YORK, July 30, 2008 -- The Jefferies investment bank today announced that Frank A. Merola has joined as a Managing Director in the Recapitalization & Restructuring Group of the Firm’s Investment Banking Division. Mr. Merola has more than 20 years of experience in business reorganization and bankruptcy as an attorney with Stutman, Treister & Glatt, P.C., a Los-Angeles based boutique law firm. He will be based in the Los Angeles office of Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF).

In a joint statement, Michael J. Henkin and Steven R. Strom, Co-Heads of Jefferies’ Recapitalization & Restructuring advisory practice, commented, “Frank Merola brings to Jefferies experience, insight, and instincts that will benefit all of our restructuring clients. With the next cycle of defaults just beginning, the addition of Frank to the Jefferies team rounds out our national presence and augments our ability to provide senior-level professionals to all of our restructuring clients.”

“I am very excited about the opportunity to join Jefferies,” said Mr. Merola. “The platform at Jefferies provides me with a full selection of tools to recapitalize or restructure our clients.”

With more than 40 banking professionals working on active engagements, Jefferies’ Recapitalization & Restructuring group has long been a core component of the Firm’s Investment Banking Division. Jefferies has advised on some of the largest recent in- and out-of-court restructurings, including those for Bally Total Fitness, Movie Gallery, Summit Global Logistics, Solutia, Federal Mogul Corporation and Revere Industries. So far this year, Jefferies’ Recapitalization & Restructuring group has either completed or continues to work on 27 engagements valued at more than $40 billion. In 2007, the group worked with clients on more than 30 transactions, representing over $70 billion in value.

As a restructuring lawyer, Mr. Merola has advised debtors, creditors, acquirors and equity holders in both Chapter 11 and out-of-court restructurings across a range of industries. Prior clients include Sirius Satellite Radio, Harbinger Capital Partners, Apollo Capital Management and Prentice Copley Investment Group. Mr. Merola has developed a sub-specialty advising parties in casino restructurings and bankruptcies, including Tropicana Hotel & Casino, Trump Hotel & Casino Resorts, Aladdin Hotel & Casino, Sands Atlantic City, Resort at Summerlin, Gold River Hotel & Casino and Arizona Charlies. For his work with USA Capital First Trust Deed Fund LLC during 2007, Mr. Merola was recognized as co-recipient of the Large Company Transaction of the Year Award given by the Turnaround Management Association, an organization for which he is a board member. Mr. Merola graduated cum laude with a BS in Business Administration from Georgetown University, and a JD from University of California at Los Angeles School of Law.


About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for over 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).


For further information, please contact:

Tom Tarrant, Jefferies & Company, Inc., 203 708 5989, ttarrant@jefferies.com
Josh Passman, Cubitt Jacobs & Prosek, 212 279 3115, x203, jpassman@cjpcom.com