Jefferies Group, Inc. Announces the Pricing of $300 Million of Convertible Senior Debentures

The debentures will pay interest semi-annually at a rate of 3.875% per annum. Holders of the debentures may elect to convert their debentures under certain circumstances. Upon conversion, the Company will deliver to such converting holders either shares of the Company's common stock, cash or a combination of cash and shares, at its election. The initial conversion rate will be 25.5076 shares of the Company's common stock per $1,000 principal amount of debentures (equivalent to an initial conversion price of approximately $39.20 per share of common stock), subject to adjustment in certain circumstances. The initial conversion price represents a premium of 35% over the October 20, 2009 closing price of the Company's common stock of $29.04 per share.

The Company intends to use the net proceeds from the offering for general corporate purposes. If the underwriters exercise their over-allotment option to purchase additional debentures, the Company will use the proceeds from such sale of additional debentures for general corporate purposes.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy the debentures or any other securities, nor will there be any sale of debentures or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The Company has filed a registration statement (including a Prospectus dated October 20, 2009, which has been supplemented by a Preliminary Prospectus Supplement dated October 20, 2009) with the Securities and Exchange Commission for the offering to which this communication relates. Before you invest, you should read the prospectus supplement and accompanying base prospectus along with other documents that the Company has filed with the Securities and Exchange Commission for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission website at www.sec.gov. Alternatively, copies may be obtained from Jefferies & Company, Inc., Attention: Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022 or at (888) 449-2342.

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).

SOURCE: Jefferies Group, Inc.

Jefferies & Company, Inc. 
Tom Tarrant, 203-708-5989 
ttarrant@jefferies.com