Jefferies Expands Investment Banking Management Team for Leading Energy Practice

Business Wire, June 16, 2008

NEW YORK & HOUSTON -- The Jefferies investment bank today announced the expansion of its management team for the Firm's energy investment banking group, Jefferies Randall & Dewey. This team will include Ralph Eads III, appointed Chairman of the group and formerly its Co-President, and Stephen Straty and David Rockecharlie, who have been named group Co-Heads.

Mr. Straty joins Jefferies following 17 years at Bear Stearns, and Mr. Rockecharlie is a 14-year energy banker who has been with Jefferies for the past five. In addition to being named Chairman of Jefferies Randall & Dewey, Mr. Eads has also been appointed a Vice Chairman of Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF).

Messrs. Eads, Straty and Rockecharlie will be responsible for driving the activities and growth of the Firm's established energy advisory and capital markets practice. Jefferies has more than 75 energy investment banking professionals and completed nearly 70 transactions worth over $27 billion in 2007, ranking as the #1 M&A energy advisor for the second consecutive year, according to Thomson Financial.

Claire Farley, who previously served with Mr. Eads as Co-President of Jefferies Randall & Dewey, will return to the oil and gas industry, becoming a long-term consultant and trusted advisor to the Firm.

"The experience, relationships and deep industry knowledge of Ralph Eads, Steve Straty and David Rockecharlie provide continued leadership and strategic direction to our industry-leading effort," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "We are pleased to have completed this natural management progression and excited that Steve has joined Ralph and David in the leadership of this important business for Jefferies. We also wish Claire the best as she returns to her roots as an industry executive and look forward to working with her as an advisor and client," he added.

"I look forward to partnering with Steve and David as we continue to build on our successful franchise," said Mr. Eads. "Jefferies has been in the energy sector for nearly 20 years, and the breadth and depth of our team and capabilities are among the best for serving clients."

Mr. Straty has nearly 30 years of experience in finance, most recently as a senior managing director and head of the natural resources group at Bear Stearns, where he worked for the past 17 years. Prior to that firm, Mr. Straty spent several years as an investment banker at Smith Barney, and, previously, at Prudential. He received both his Bachelor and Master of Business Administration degrees, with highest honors, at the University of Texas, Austin.

Prior to Jefferies Randall & Dewey, Mr. Rockecharlie was an executive at El Paso Corp., where he held senior operating and finance positions. Previously, he was an energy investment banker with Donaldson Lufkin & Jenrette in New York and Houston, as well as SG Warburg & Co. Mr. Rockecharlie received an AB, magna cum laude, from Princeton University.

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).