Jefferies and MassMutual Increase Their Commitments to Jefferies Finance LLC

Jefferies Group Inc. (NYSE: JEF) today announced that Jefferies and Massachusetts Mutual Life Insurance Company (“MassMutual”) have doubled their equity commitments to Jefferies Finance LLC, the commercial finance joint venture the two firms founded in October 2004. With an incremental $250 million from each partner, the new total committed equity capitalization of the finance company is $1 billion. In addition, they have entered into a $1 billion Secured Revolving Credit Facility to be funded equally by the two firms to support large loan underwritings by Jefferies Finance.

This enlarged capital basis, together with appropriate third-party leverage, will allow Jefferies Finance to continue to grow its business of providing senior loans to companies, originated primarily through the investment banking efforts of Jefferies. Babson Capital Management LLC, a MassMutual affiliate, will continue to provide portfolio management services. Jefferies Finance has originated over $20 billion in loans in the last five years.

Richard B. Handler, Chairman and Chief Executive Officer of Jefferies, commented, “Jefferies’ partnership with MassMutual continues to flourish and provide added value for our respective platforms. The further growth and development of Jefferies Finance will enable us to better serve our investment banking client base of companies and financial sponsors.”

“We are pleased to extend our commitment to Jefferies Finance LLC, as it has been a successful investment for our company and its policyholders," said Thomas M. Finke, Executive Vice President and Chief Investment Officer, MassMutual, and Chairman and CEO, Babson Capital. "This business continues to be a thriving joint venture for both organizations, as it expands the capabilities of Jefferies’ leading investment banking franchise while providing an additional source of earnings for MassMutual."

Jefferies' commitments to Jefferies Finance will be funded from available cash as the business develops over the next few years. Jefferies accounts for its 50% interest in Jefferies Finance on the equity method of accounting. In addition, origination and syndication fees earned by Jefferies from Jefferies Finance are included in Jefferies' reported investment banking revenue.

Jefferies Group, Inc. (NYSE: JEF), a global securities and investment banking firm, has served companies and investors for nearly 50 years.

About MassMutual

Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders every year since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company’s strong and growing network of financial professionals helps clients make good financial decisions for the long-term.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.

About Babson Capital

Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $133.1 billion in assets under management as of Dec. 31, 2010. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, and Cornerstone Real Estate Advisers LLC in Hartford, Conn. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com .

Contact:

Jefferies & Company, Inc.
Tom Tarrant, +1-212-284-2389
ttarrant@Jefferies.com
or
MassMutual / Babson Capital Management LLC
Marty McDonough, +1-413-226-1187
MMcDonough@BabsonCapital.com