Net Revenues of $349 Million, Net Loss of $24 Million, Loss Per Share of $0.17, Investment Banking Revenues Up 15% to $167 Million.

New York, January 23, 2008 -- Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the fourth quarter ended December 31, 2007.
 
Highlights for the fourth quarter ended December 31, 2007:

• Net revenues were $349.4 million, compared to $374.2 million for the fourth quarter of 2006.
• Net loss was $24.2 million, compared to net earnings of $55.8 million for the fourth quarter of 2006. 
• Net loss per share (diluted) was $0.17, compared to net earnings per share (diluted) of $0.38 for the fourth quarter of 2006. 
• Investment banking revenues were up 15% to $167.2 million, compared to $145.2 million for the fourth quarter of 2006.

Highlights for the year ended December 31, 2007:

• Net revenues were $1.6 billion, compared to $1.5 billion for the year ended 2006.
• Net earnings were $144.7 million, compared to $205.8 million in for the year ended 2006. 
• Net earnings per share (diluted) were $0.97, compared to $1.42 for the year ended 2006.
• Investment banking revenues were $750.2 million, compared to $540.6 million for the year ended 2006.

"Despite the incredibly difficult second half of 2007, we completed the year with record net revenues and the third best net earnings in Jefferies' 46-year history," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.  "We are not satisfied with our results in the fourth quarter but believe our franchise is intact, our balance sheet is strong, and our 2,543 employee-shareholders are committed to doing our absolute best, regardless of the environment."

A conference call with management discussion of financial results for the fourth quarter and year ended December 31, 2007 will be held on January 23, 2008 at 9:00 AM Eastern and can be accessed at (706) 634-9290.  A replay of the call will be available two hours post-call at (402) 977-9140 (code: 21370677).  A live audio webcast and delayed replay will also be available under "Investor Relations" at www.jefferies.com.  Questions for consideration by management can be submitted in advance through "Contact Us" at www.jefferies.com or by calling 203-708-5975 by 8:30 AM Eastern on January 23, 2008.

 
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).  Jefferies International Limited is a UK-incorporated, wholly owned subsidiary of Jefferies Group, Inc.