Jefferies Family Scholarship News
April 2007

The application period for the 2007-2008 academic year has come to an end. As usual we have had an outpouring of qualified young students, and would like to thank everyone who applied. Recipients will be announced at the end of June.

A New Era for Jefferies Family Scholarship
In our 26th year of supporting the children of Jefferies employees in their educational pursuits, the Jefferies Family Scholarship, like any effective organization, is constantly striving to improve, which by nature requires change. Below are a few of the exciting changes that have happened over the past few years.

• Seventy-five percent increase in funds allocated to scholarships since 2000.
• Implemented a computerized scoring system, which ensures that financial need is the most heavily weighted factor in the selection of our scholarship winners
• Established the Jefferies Award of Merit (JAM) to acknowledge the achievements of superior students independent of financial need
• Launched a new web site that better reflects the spirit and people involved with the program
• Welcomed Paul Deninger, Bill Derrough, and Tom Tarrant to our Board of Directors
• Welcomed three new Selection Committee members, all of whom are independent from Jefferies & Company, Inc.
• Changed our name to Jefferies Family Scholarship to emphasize the family nature of the program
• Launched a bi-annual newsletter to increase communications with recipients, alumni and Jefferies employees

One thing we have not changed is our commitment to ensuring a future without limits for the students who benefit from monetary awards and the Jefferies Award of Merit. In 2000, JFS gave away $260,000 in scholarships, an all time high since inception of the program 20 years earlier. Four years later, that figure doubled when we awarded $460,000. Less than eight years from now, we anticipate doubling our current number of scholarships awarded. With the cost of tuition rising, this scholarship is more important than ever for families with financial need.

Alumni Updates

• In her senior year at the University of Chicago, Rachel Fremont has been accepted to medical school.
• Thomas Kenyon won a Royal Institute of Naval Architects (RINA) design award for his team's design, construction, functional testing, and explanation of their model bulk carrier/cargo ship. Thomas is studying Ship Science at the School of Engineering Sciences, University of Southampton in England.
• After graduating in June from Dartmouth, Annie Daher will spend a year doing community service work in the Marshall Islands before applying to law schools.
• Ben Budish, a junior at the University of Michigan, recently performed in both "Singing in the Rain" and "Chicago." Ben is the Principal Trumpet in the Detroit Civic Orchestra and is the head of the trumpet studio. He will be spending this summer performing at the Brevard Music Festival in North Carolina.
• Since receiving his BS degree in Molecular Cellular and Developmental Biology from UCLA in 2005, Joseph Cao has been working as a lab technician studying Parkinson's disease genes in fruit flies. This September, he will start graduate school at UCLA.
• Alexandra Wolles was nominated for the "Teacher of the Year" award in the Alameda school district.

A Message from our Chairman

Help Us Reach Our Goal!
Yes, it is that time again – time for another fundraiser to benefit the scholarship program. Fundraising is a constant commitment. For the last several years, we have been averaging approximately 45 scholarship recipients per year. At $10,000 a piece, that is $450,000 per year. As Jefferies continues to grow in size, so does our potential applicant pool. Since 2000, the firm has literally doubled in size, and our projections show that we will be awarding significantly more scholarships in future years. If we were to rest on our laurels, it would not take long to deplete the principal. Without fundraising, the program would wither and eventually disappear.

When I agreed to serve as chairman of the scholarship program, I did so with the conviction that to ensure the future of this program, we needed to increase the size of the fund significantly. Thanks to the generosity and enthusiasm of so many of you at Jefferies, we have had three successful fundraisers during my tenure. But our objective has not yet been met. We need to keep reaching for that goal, to ensure that the scholarship will go on in perpetuity and the students of Jefferies employees will continue receiving the support they need.

This month we will kick off our fundraiser. As in years passed, amazing prizes are being offered. Your odds are good with one ticket, but even better with a fistful. This is your chance to support the scholarship while having some fun and possibly winning a great prize. Join me in making this fundraiser our biggest one yet and together we can ensure a future without limits for the Jefferies Family Scholarship.

Thank you for your continued support.

John C. Shaw, Jr.