Jefferies Reports Second Quarter 2012 Financial Results

Jefferies Group, Inc. (NYSE: JEF) today announced financial results for its fiscal second quarter and first half ended May 31, 2012.

Highlights for the three months ended May 31, 2012, versus the three months ended May 31, 2011:

• Net revenues of $711 million, versus $727 million
• Net earnings to common shareholders of $63 million ($72 million on a non-GAAP basis after excluding certain items[1]), versus $81 million
• Net earnings per common share of $0.28 ($0.31 on a non-GAAP basis after excluding certain items1), versus $0.36
• Investment Banking net revenues of $297 million, versus $328 million
• Fixed Income net revenues of $293 million, versus $223 million

Highlights for the six months ended May 31, 2012 versus the six months ended May 31, 2011:

• Net revenues of $1,491 million, versus $1,486 million
• Net earnings to common shareholders of $141 million ($148 million on a non-GAAP basis after excluding certain items1), versus $168 million
• Net earnings per common share of $0.61 ($0.64 on a non-GAAP basis after excluding certain items1), versus $0.78
• Investment Banking net revenues of $583 million, versus $567 million
• Fixed Income net revenues of $632 million, versus $541 million

"Our results reflect our continued strength in investment banking and the durability of our sales and trading platform despite the challenging market environment that again evolved during the quarter," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "We believe Jefferies is unique today in our intense focus on offering an integrated, global capital markets platform to our clients and an entrepreneurial culture to our employee-partners."

A conference call with management discussion of these financial results will be held today, Tuesday, June 19, 2012, at 9:00 AM Eastern. Investors and securities industry professionals may access the management discussion by calling 877-710-9938 or 702-928-7183. A one-week replay of the call will also be available at 855-859-2056 or 404-537-3406 (conference ID # 84086805). A live audio webcast and delayed replay can also be accessed at Jefferies.com.

Jefferies Group, Inc. (NYSE: JEF), the global investment banking firm focused on serving clients for 50 years, is a leader in providing insight, expertise and execution to investors, companies and governments. The firm provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income, foreign exchange, futures and commodities, and also select asset and wealth management strategies, in the Americas, Europe and Asia.

[1] Adjustments to net earnings to common shareholders and net earnings per common share for certain non-GAAP items include amortization of intangibles, and compensation awards and impairment charges on intangibles related to our Bache and Hoare Govett acquisitions and interest expense incurred as a result of debt extinguishment accounting from prior quarters, all on an after-tax basis.

-- financial tables follow --

May 31,
2012

May 31,
2011

May 31,
2012

May 31,
2011

Asset management fees and
investment income from managed funds

Interest on mandatorily redeemable referred interest of
consolidated subsidiaries

Net revenues, less mandatorily redeemable preferred
interest

May 31,
2012

February 29,
2012

May 31,
2011

Net revenues, less mandatorily redeemable referred
interest

Financial Ratios

May 31,
2012

February 29,
2012

May 31,
2011

Revenues by Source

Asset management fees and investment income / (loss)
from managed funds:

Investment (loss) / income from managed funds

Interest on mandatorily redeemable preferred interest of
consolidated subsidiaries

Net revenues, less mandatorily redeemable
preferred interest

Other Data