Jefferies Continues Expansion of High Yield, Leveraged Loan and Distressed Sales, Trading and Research Platform

Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today provided an update on the progress of its focused hiring effort to expand the firm’s capabilities in high yield, leveraged loans, distressed and special situations sales, trading and research.

Following the addition of Robert Harteveldt, a 24-year Bear Stearns veteran, as Chairman of Fixed Income in July 2008, Jefferies has hired nine sales professionals, one trader and seven research analysts, expanding the distribution team to nearly 50 professionals dedicated to these products. During the next few weeks Jefferies expects to announce the additional hiring of three more traders, further extending the firm’s presence in the leveraged loan, high yield and distressed markets.

"Jefferies has been fortunate to be able to add highly respected, senior and experienced professionals during these challenging times for our industry. This expansion in high yield is an essential part of our commitment to providing clients with high quality, best-in-class sales, trading and research capabilities,” commented Richard Handler, Chairman and CEO of Jefferies. "As Jefferies has weathered these trying times, experienced professionals from across Wall Street have come to recognize the strength of our platform and are joining our team.”

"With the addition of these and other soon-to-be-announced talented professionals, Jefferies has compiled one of the broadest, most experienced teams in the high yield, loan and distressed markets,” added Mr. Harteveldt. "We have made substantial progress with these additions already resulting in improved market share. We will continue to add seasoned senior professionals that expand the depth and breadth of our leveraged credit trading platform. With these additions and the firm’s healthy financial condition, Jefferies is very well-positioned to meet the needs of our clients and gain market share in the high yield, distressed and bank loan markets.”

Summary of Recent Hires

With seven recent hires, the firm’s high yield and distressed debt sales team has grown to 17 professionals. Danielle Bar-Illan and Richard Wright joined from Bear Stearns (JP Morgan Chase); Robert Hamill joined from Lehman Brothers; Michael Kasper joined from JP Morgan Chase; Scott Haberman and Richard Reubenstone joined from Merrill Lynch; and Steven Rosen joined from Deutsche Bank.

Jefferies’ sales team for performing and non-performing bank loans now totals five professionals, including two recent additions: James Wood from UBS and Richard Furlong from Bear Stearns (JP Morgan Chase).

In trading, Kurt Krestinski joined Jefferies from Barclays Capital. With 13 years of both buy- and sell-side experience trading high yield and distressed securities, Mr. Krestinski trades the technology, retail and media sectors at Jefferies.

The firm’s research teams for leveraged finance and special situations have grown to 25 professionals. Two senior publishing analysts have recently joined in leveraged finance, growing that team to 17 professionals, including 10 sector analysts. Eric Toubin joined Jefferies from Bank of America where he had been an analyst ranked by Institutional Investor for the last four years covering the technology section. Additionally, John Maxwell joined from Merrill Lynch to cover the gaming space, in which he has also been ranked by Institutional Investor for the last four years.

Jefferies’ special situations team has grown to seven analysts who are focused on transaction-oriented ideas in all parts of the capital structure of leveraged companies. The five recent additions include: Spencer Alstodt who joined the firm from Bear Stearns where he focused on capital markets transactions; Justin Brass who joined Jefferies from Paul Weiss where he advised both debtors and creditors of bankrupt companies and companies undergoing reorganizations; Andrew Brausa who joined from Citadel Investment Group where he focused on homebuilders and building material companies; Kevin O’Brien who joined from Basso Capital Partners where he focused on power, utility, and gaming companies, and Milun Patel who joined from Credit Suisse where he focused on metal and mining, energy, and automotive suppliers.

About Jefferies

Jefferies, an independent, full-service global securities and investment banking firm, has served companies and their investors for more than 45 years. Headquartered in New York City, with offices in more than 25 cities around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm provides investors with fundamental research and trade execution in equity, equity-linked, and fixed income securities, including corporate bonds, high yield bonds, US government and agency securities, repo finance, mortgage- and asset-backed securities, municipal bonds, whole loans and emerging markets debt, as well as commodities and derivatives. Jefferies offers companies capital markets, merger and acquisition, restructuring and other financial advisory services. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF: www.jefferies.com).