Jefferies to Expand Fixed Income Rates Business with Hiring of New Leadership

Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of Daniel B. Markaity and Christopher M. Bury as Managing Directors and co-heads of the Firm’s fixed income rates business, which includes institutional sales and trading of treasury and government agency securities, as well as the repo finance business. Together, Mr. Markaity, who is expected to join the firm next month, and Mr. Bury, who starts today, have more than 40 years of experience in the sales and trading of fixed income securities. Both professionals were longtime employees of Merrill Lynch.

"We see a terrific opportunity to grow Jefferies’ government and agency securities business now that there has been a reduction in the number of quality securities firms participating in this market, and particularly at a time when we expect increased issuance from government,'' commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "Chris Bury and Dan Markaity have the experience and relationships necessary to develop Jefferies’ rates business into a market-leading platform.”

Tim Cronin, Head of the Fixed Income Division at Jefferies, added, "We are making an effort to grow our business in this asset class with very strong client demand. The leadership of Chris Bury and Dan Markaity enhances our existing efforts and, given their many years in the business, will enable us to more easily add to our team going forward.”

These new positions represent a further strengthening of Jefferies’ overall sales and trading platform and continue the Firm’s strategic growth in fixed income, where more than 50 senior professionals have joined in the past nine months. Jefferies’ fixed income effort now includes more than 150 professionals focused on the sales and trading of corporate bonds, US government and agency securities, repo finance, mortgage- and asset-backed securities, municipal bonds, whole loans and emerging markets debt.

Mr. Markaity has more than 27 years of experience in fixed income sales and trading, all of it at Merrill Lynch & Co., where, for the past seven years, he has been a Managing Director and Head of Global Public Credit. Mr. Markaity received a MBA in Finance and International Business from Columbia University Business School, and earned a BA in Business from Michigan State University.

Similarly, Mr. Bury has more than 13 years of experience in fixed income sales and trading, all of it at Merrill Lynch & Co., where he most recently was Director and Co-CEO of Merrill Lynch Government Securities Inc. and Trading Manager of the USD Agency Desk. Mr. Bury received a Bachelor of Business Administration, concentration in Finance, cum laude, from the University of Notre Dame.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served companies and their investors for over 45 years. Headquartered in New York, 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 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).