Jefferies 8-K Jefferies Announces First Quarter Financial Results

Exhibit 99

Jefferies Announces First Quarter Financial Results

NEW YORK--(BUSINESS WIRE)--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for our first quarter ended March 31, 2008.

Highlights for the first quarter ended March 31, 2008:

• Net revenues were down 52% to $201.2 million, versus $418.8 million in the first quarter of 2007, primarily resulting from a $51 million loss in Jefferies High Yield Trading, a $34 million loss in Jefferies Asset Management, and investment banking revenues of only $99 million.
• The net loss for the first quarter of 2008 was $60.5 million as compared to net earnings of $62.3 million for the first quarter of 2007.
• The net loss per share (diluted) was $0.43 as compared to net earnings per share (diluted) of $0.42 for the first quarter of 2007.

“Despite this quarter’s brutal market conditions and disappointing results, Jefferies remains in a strong financial and market position with excess liquidity and a solid business base,” commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "With a platform positioned to perform, we remain confident about executing on our strategy as the markets reach equilibrium.”

Conference Call

A conference call with management discussion of financial results for the first quarter will be held on April 21, 2008 at 11:00 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: 21379617). 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 10:00 AM Eastern on April 21, 2008.

About Jefferies

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

-- financial tables follow --

JEFFERIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands, Except Per Share Amounts) (Unaudited)
	Three Months Ended
	Mar. 31, 2008			Mar. 31, 2007
Revenues:
Commissions	$	113,651		$	77,032
Principal transactions		54			144,449
Investment banking		99,207			170,115
Asset management fees and investment income (loss) from managed funds
		(27,796	)		22,485
Interest		204,891			201,162
Other		6,480			8,041
Total revenues		396,487			623,284
Interest expense		195,291			204,475
Revenues, net of interest expense		201,196			418,809
Non-interest expenses:
Compensation and benefits		259,951			227,666
Floor brokerage and clearing fees		12,948			14,582
Technology and communications		30,916			22,157
Occupancy and equipment rental		17,257			18,171
Business development		12,900			13,109
Other		20,481			19,631
Total non-interest expenses		354,453			315,316
(Loss)/earnings before income taxes and minority interest		(153,257	)		103,493
Income tax (benefit)/expense		(57,892	)		40,658
(Loss)/earnings before minority interest		(95,365	)		62,835
Minority interest in (loss) earnings of consolidated subsidiaries, net
		(34,828	)		576
Net (loss)/earnings		($60,537	)	$	62,259
(Loss)/earnings per share:
Basic		($0.43	)	$	0.44
Diluted		($0.43	)	$	0.42
Weighted average shares:
Basic		141,784			140,897
Diluted		141,784			152,058
Effective Tax Rate		37.8	%		39.3	%

JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Per Share Amounts) (Unaudited)
	Quarters ended
		3/31/2008		12/31/2007		9/30/2007		6/30/2007		3/31/2007		12/31/2006
Statement of Earnings
Revenues, net of interest expense	$	201,196	$	349,397	$	334,424	$	465,460	$	418,809	$	374,235
Non-interest expenses:
Compensation and benefits		259,951		283,538		183,503		251,602		227,666		197,425
Non-personnel expenses		94,502		107,330		95,600		85,467		87,650		82,615
(Loss)/earnings before income taxes and minority interest
		(153,257)		(41,471)		55,321		128,391		103,493		94,195
Income tax (benefit)/expense		(57,892)		(14,134)		21,608		45,046		40,658		38,018
(Loss)/earnings before minority interest		(95,365)		(27,337)		33,713		83,345		62,835		56,177
Minority interest in (loss) earnings of consolidated subsidiaries, net
		(34,828)		(3,135)		(5,060)		15,510		576		394
Net (loss)/earnings		($60,537)		($24,202)	$	38,773	$	67,835	$	62,259	$	55,783
Diluted (loss)/earnings per share		($0.43)		($0.17)	$	0.26	$	0.45	$	0.42	$	0.38
Financial Ratios
Pretax operating margin		-76.2%		-11.9%		16.5%		27.6%		24.7%		25.2%
Compensation and benefits / net revenues		129.2%		81.2%		54.9%		54.1%		54.4%		52.8%
Effective tax rate		37.8%		34.1%		39.1%		35.1%		39.3%		40.4%

JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Per Share Amounts) (Unaudited)
		Quarters ended
			3/31/2008			12/31/2007			9/30/2007			6/30/2007		3/31/2007		12/31/2006
Revenues by Source
Equities		$	138,193		$	139,248		$	140,296		$	144,563	$	173,057	$	151,974
Fixed Income & Commodities
	Fixed Income (excluding high yield) and Commodities
			33,668			36,201			16,502			40,443		46,128		32,964
	High Yield		(51,676	)		(3,225	)		(7,387	)		34,123		10,337		9,978
	Fixed Income & Commodities Total		(18,008	)		32,976			9,115			74,566		56,465		42,942
	Total		120,185			172,224			149,411			219,129		229,522		194,916
Investment banking			99,207			167,204			189,780			223,093		170,115		145,167
Asset management fees and investment income (loss) from managed funds:
Asset management fees			6,285			6,419			5,369			7,294		9,451		14,190
Investment income (loss) from managed funds			(34,081	)		(12,471	)		(11,652	)		6,090		13,034		15,228
	Total		(27,796	)		(6,052	)		(6,283	)		13,384		22,485		29,418
Interest			204,891			328,926			334,056			310,739		201,162		143,847
	Total revenues	$	396,487		$	662,302		$	666,964		$	766,345	$	623,284	$	513,348
Other Data
Number of trading days			61			64			63			63		61		63
Average employees			2,486			2,521			2,472			2,319		2,265		2,239
Common shares outstanding			132,762			124,453			125,657			125,740		124,238		119,547
Weighted average shares:
Basic			141,784			140,726			142,822			142,092		140,897		136,438
Diluted			141,784			140,726			155,480			154,301		152,058		150,599
As of March 31, 2008, stockholders' equity amounted to $1.7 billion, resulting in book value of $13.03 per share.

CONTACT:
Jefferies Group, Inc.
Chief Financial Officer
Peregrine C. Broadbent, (212) 284-2338