Exhibit 99.1

Jefferies Announces Quarterly Results

• 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--(BUSINESS WIRE)--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.”

Conference Call

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.

JEFFERIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands, Except Per Share Amounts) (Unaudited)
	Three Months Ended				Twelve Months Ended
	Dec. 31, 2007		Dec. 31, 2006		Dec. 31, 2007		Dec. 31, 2006
Revenues:
Commissions	$99,823		$72,092		$355,601		$280,681
Principal transactions	69,570		114,914		390,374		468,002
Investment banking	167,204		145,167		750,192		540,596
Asset management fees and
investment income (loss) from managed funds	(6,052	)	29,418		23,534		109,550
Interest	328,926		143,847		1,174,883		528,882
Other	2,831		7,910		24,311		35,497
Total revenues	662,302		513,348		2,718,895		1,963,208
Interest expense	312,905		139,113		1,150,805		505,606
Revenues, net of interest expense	349,397		374,235		1,568,090		1,457,602
Non-interest expenses:
Compensation and benefits	283,538		197,425		946,309		791,255
Floor brokerage and clearing fees	21,587		16,201		71,851		62,564
Technology and communications	31,783		20,977		103,763		80,840
Occupancy and equipment rental	20,450		15,402		76,765		59,792
Business development	17,614		12,577		56,594		48,634
Other	15,896		17,458		67,074		65,863
Total non-interest expenses	390,868		280,040		1,322,356		1,108,948
(Loss)/earnings before income taxes, minority
interest and cumulative effect of change
in accounting principle, net	(41,471	)	94,195		245,734		348,654
Income tax (benefit)/expense	(14,134	)	38,018		93,178		137,541
(Loss)/earnings before minority interest and cumulative effect
of change in accounting principle, net	(27,337	)	56,177		152,556		211,113
Minority interest in (loss) earnings of
consolidated subsidiaries, net	(3,135	)	394		7,891		6,969
(Loss)/earnings before cumulative effect of change
in accounting principle, net	(24,202	)	55,783		144,665		204,144
Cumulative effect of change in accounting principle, net	-		-		-		1,606
Net (loss)/earnings	($24,202	)	$55,783		$144,665		$205,750
(Loss)/earnings per share:
Basic-
(Loss)/earnings before cumulative effect of
change in accounting principle, net	($0.17	)	$0.41		$1.02		$1.53
Cumulative effect of change in accounting principle, net	-		-		-		0.01
Net (Loss)/earnings	($0.17	)	$0.41		$1.02		$1.54
Diluted-
(Loss)/earnings before cumulative effect of
change in accounting principle, net	($0.17	)	$0.38		$0.97		$1.41
Cumulative effect of change in accounting principle, net	-		-		-		0.01
Net (Loss)/earnings	($0.17	)	$0.38		$0.97		$1.42
Weighted average shares:
Basic	140,726		136,438		141,515		133,898
Diluted	140,726		150,599		153,807		147,531
Effective Tax Rate	34.1	%	40.4	%	37.9	%	39.4	%

JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Per Share Amounts) (Unaudited)
	Quarters ended
	12/31/2007		9/30/2007		6/30/2007		3/31/2007		12/31/2006		9/30/2006
Statement of Earnings
Revenues, net of interest expense	$349,397		$334,424		$465,460		$418,809		$374,235		$340,610
Non-interest expenses:
Compensation and benefits	283,538		183,503		251,602		227,666		197,425		184,421
Non-personnel expenses	107,330		95,600		85,467		87,650		82,615		79,852
(Loss)/earnings before income taxes,
minority interest and cumulative effect
of change in accounting principle, net	(41,471	)	55,321		128,391		103,493		94,195		76,337
Income tax (benefit)/expense	(14,134	)	21,608		45,046		40,658		38,018		29,734
(Loss)/earnings before minority interest
and cumulative effect of change
in accounting principle, net	(27,337	)	33,713		83,345		62,835		56,177		46,603
Minority interest in (loss) earnings of
consolidated subsidiaries, net	(3,135	)	(5,060	)	15,510		576		394		663
Net (loss)/earnings	($24,202	)	$38,773		$67,835		$62,259		$55,783		$45,940
Diluted (loss)/earnings per share	($0.17	)	$0.26		$0.45		$0.42		$0.38		$0.32
Financial Ratios
Pretax operating margin	-11.9	%	16.5	%	27.6	%	24.7	%	25.2	%	22.4	%
Compensation and benefits / net revenues	81.2	%	54.9	%	54.1	%	54.4	%	52.8	%	54.1	%
Effective tax rate	34.1	%	39.1	%	35.1	%	39.3	%	40.4	%	39.0	%

JEFFERIES GROUP, INC. AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Per Share Amounts) (Unaudited)
		Quarters ended
		12/31/2007		9/30/2007		6/30/2007	3/31/2007	12/31/2006	9/30/2006
Revenues by Source
Equities		$139,248		$140,296		$144,563	$173,057	$151,974	$112,635
Fixed Income & Commodities
	Fixed Income (excluding high yield)
	and Commodities	36,201		16,502		40,443	46,128	32,964	50,871
	High Yield	(3,225	)	(7,387	)	34,123	10,337	9,978	11,188
	Fixed Income & Commodities Total	32,976		9,115		74,566	56,465	42,942	62,059
	Total	172,224		149,411		219,129	229,522	194,916	174,694
Investment banking		167,204		189,780		223,093	170,115	145,167	144,763
Asset management fees and investment income (loss) from managed funds:
Asset management fees		6,419		5,369		7,294	9,451	14,190	6,345
Investment income (loss) from managed funds		(12,471	)	(11,652	)	6,090	13,034	15,228	10,438
	Total	(6,052	)	(6,283	)	13,384	22,485	29,418	16,783
Interest		328,926		334,056		310,739	201,162	143,847	132,424
	Total revenues	$662,302		$666,964		$766,345	$623,284	$513,348	$468,664
Other Data
Number of trading days		64		63		63	61	63	63
Average employees		2,521		2,472		2,319	2,265	2,239	2,212
Common shares outstanding		124,453		125,657		125,740	124,238	119,547	118,876
Weighted average shares:
Basic		140,726		142,822		142,092	140,897	136,438	135,140
Diluted		140,726		155,480		154,301	152,058	150,599	148,908
As of December 31, 2007, stockholders' equity amounted to $1.8 billion, resulting in book value of $14.15 per share.

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