LUK Leucadia National Corp.

Jefferies Group LLC today announced financial results for its fiscal third quarter 2017.

Highlights for the three months ended August 31, 2017:

• Total Net Revenues of $801 million
• Investment Banking Net Record Revenues of $476 million
• Total Equities and Fixed Income Net Revenues of $320 million
• Earnings Before Income Taxes of $122 million
• Net Earnings of $84 million

Highlights for the nine months ended August 31, 2017:

• Total Net Revenues of $2,375 million
• Investment Banking Net Revenues of $1,236 million
• Total Equities and Fixed Income Net Revenues of $1,128 million
• Earnings Before Income Taxes of $363 million
• Net Earnings of $268 million

Rich Handler, Chairman and Chief Executive Officer, and Brian Friedman, Chairman of the Executive Committee, commented: “Our third quarter net revenues of more than $800 million represent our best third quarter in Jefferies' history (excluding Bache), and are significantly above the revenues of $654 million for the same quarter last year and $683 million for the second quarter of this year (excluding last quarter's $96 million gain on our KCG position, which has now been sold).”

“Our third quarter performance was led by a quarterly record $476 million in Investment Banking revenues. We have been focused on building our Investment Banking business for many years, with the last two years affording us yet another important opportunity to recruit and expand upon our already broad footprint. The continued successful development of our investment banking platform should lead to greater stability in our results and compounding benefits to our overall platform.”

“Jefferies' Investment Banking net revenues reflect record quarterly debt capital markets net revenues, solid results in our equity capital markets effort and a strong performance in mergers, acquisitions and advisory, as well as broad participation across our industry groups, including healthcare, energy, technology media and telecommunications, financial services, industrials and consumer. This third quarter alone, our 789 global investment banking professionals completed 381 debt financings raising $91 billion of capital, 34 equity financings raising $16 billion of capital and 50 merger and acquisitions transactions aggregating $29 billion in total deal size. Our Investment Banking backlog remains robust.”

“Our Equities and Fixed Income results were solid, while volumes and volatility were subdued for much of the quarter. We are driving growth in market share in our core equities business, while our fixed income efforts are much improved, with increased capital efficiency and lower overall risk.”

“Our non-compensation costs include $4.4 million of the more than $5.0 million we, our clients and our employees donated to charities for Hurricane Harvey relief. We are proud Jefferies could deliver our platform to support those in need in the aftermath of this horrible disaster.”

The attached financial tables should be read in conjunction with our Quarterly Report on Form 10-Q for the quarter ended May 31, 2017, our Annual Report on Form 10-K for the year ended November 30, 2016 and our amended Annual Report on Form 10-K/A for the year ended November 30, 2016. Amounts herein pertaining to August 31, 2017 represent a preliminary estimate as of the date of this earnings release and may be revised in our Quarterly Report on Form 10-Q for the quarter ended August 31, 2017.

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements about our future results and performance, including our future market share and expected financial results. It is possible that the actual results may differ materially from the anticipated results indicated in these forward-looking statements. Please refer to our most recent Annual Report on Form 10-K for a discussion of important factors that could cause actual results to differ materially from those projected in these forward-looking statements.

Jefferies, the world's only independent full-service global investment banking firm focused on serving clients for over 50 years, is a leader in providing insight, expertise and execution to investors, companies and governments. Our firm provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income and foreign exchange, as well as wealth management, in the Americas, Europe and Asia. Jefferies Group LLC is a wholly-owned subsidiary of Leucadia National Corporation (NYSE: LUK), a diversified holding company.

  JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands) (Unaudited)             Quarter Ended August 31, 2017 May 31, 2017 August 31, 2016   Revenues: Commissions and other fees $ 139,082 $ 152,643 $ 152,044 Principal transactions 185,215 287,070 167,483 Investment banking 475,702 351,863 294,930

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

5,465 (2,697 ) 15,877 Interest 230,496 227,804 213,716 Other 12,371   22,272   19,791   Total revenues 1,048,331 1,038,955 863,841 Interest expense 247,639   259,661   209,391   Net revenues 800,692   779,294   654,450     Non-interest expenses: Compensation and benefits 462,933 450,522 376,438   Non-compensation expenses: Floor brokerage and clearing fees 44,869 47,494 40,189 Technology and communications 72,440 67,478 64,512 Occupancy and equipment rental 27,736 23,594 24,987 Business development 23,125 26,466 20,259 Professional services 25,007 26,413 29,761 Other 22,318   21,146   17,582   Total non-compensation expenses 215,495   212,591   197,290   Total non-interest expenses 678,428   663,113   573,728   Earnings before income taxes 122,264 116,181 80,722 Income tax expense 38,439   46,391   39,564   Net earnings 83,825 69,790 41,158 Net earnings (loss) attributable to noncontrolling interests 10   39   (11 ) Net earnings attributable to Jefferies Group LLC $ 83,815   $ 69,751   $ 41,169     Pretax operating margin 15.3 % 14.9 % 12.3 % Effective tax rate 31.4 % 39.9 % 49.0 %     JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands) (Unaudited)         Nine Months Ended August 31, 2017 August 31, 2016   Revenues: Commissions and other fees $ 437,547 $ 454,025 Principal transactions 693,242 382,290 Investment banking 1,235,586 778,906

Asset management fees and investment  income from managed funds

11,694 29,743 Interest income 660,323 655,836 Other 58,691   (6,937 ) Total revenues 3,097,083 2,293,863 Interest expense 721,584   621,018   Net revenues 2,375,499   1,672,845     Non-interest expenses: Compensation and benefits 1,373,627 1,141,497   Non-compensation expenses: Floor brokerage and clearing fees 138,221 124,259 Technology and communications 205,425 196,000 Occupancy and equipment rental 77,145 74,498 Business development 72,223 67,700 Professional services 83,544 82,799 Other 62,670   52,649   Total non-compensation expenses 639,228   597,905   Total non-interest expenses 2,012,855   1,739,402   Earnings (loss) before income taxes 362,644 (66,557 ) Income tax expense 95,009   5,112   Net earnings (loss) 267,635 (71,669 ) Net earnings attributable to noncontrolling interests 50   77   Net earnings (loss) attributable to Jefferies Group LLC $ 267,585   $ (71,746 )   Pretax operating margin 15.3 % (4.0 )% Effective tax rate 26.2 % (7.7 )%     JEFFERIES GROUP LLC AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Other Data) (Unaudited)               Quarter Ended August 31, 2017 May 31, 2017 August 31, 2016

Revenues by Source

Equities $ 176,789 $ 271,522 $ 148,308 Fixed income 142,736   158,606   195,335 Total Equities and Fixed income 319,525   430,128   343,643   Equity 86,081 74,902 68,218 Debt 186,261   125,847   72,473 Capital markets 272,342 200,749 140,691 Advisory 203,360   151,114   154,239 Total Investment banking 475,702   351,863   294,930  

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

Asset management fees

4,272 4,115 7,610 Investment income (loss) from managed funds 1,193   (6,812 ) 8,267 Total 5,465   (2,697 ) 15,877 Net revenues $ 800,692   $ 779,294   $ 654,450  

Other Data

Number of trading days 65 64 65 Number of trading loss days 3 3 8   Average firmwide VaR (in millions) (1) $ 6.51 $ 9.21 $ 6.62   (1)   VaR estimates the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the year ended November 30, 2016.     JEFFERIES GROUP LLC AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Other Data) (Unaudited)           Nine Months Ended August 31, 2017 August 31, 2016

Revenues by Source

Equities $ 605,025 $ 373,593 Fixed income 523,194   490,603 Total Equities and Fixed income 1,128,219   864,196   Equity 222,549 173,122 Debt 474,736   175,870 Capital markets 697,285 348,992 Advisory 538,301   429,914 Total investment banking 1,235,586   778,906  

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

Asset management fees 16,368 25,779 Investment income (loss) from managed funds (4,674 ) 3,964 Total 11,694   29,743 Net revenues $ 2,375,499   $ 1,672,845  

Other Data

Number of trading days 189 190 Number of trading loss days 9 27   Average firmwide VaR (in millions) (1) $ 8.63 $ 7.73   (1)   VaR estimates the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the year ended November 30, 2016.     JEFFERIES GROUP LLC AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Amounts in Millions, Except Where Noted) (Unaudited)             Quarter Ended August 31, 2017 May 31, 2017 August 31, 2016  

Financial position:

Total assets (1) $ 39,358 $ 40,079 $ 38,128 Average total assets for the period (1) $ 45,311 $ 45,650 $ 42,270 Average total assets less goodwill and intangible assets for the period (1) $ 43,467 $ 43,806 $ 40,408   Cash and cash equivalents (1) $ 4,807 $ 4,357 $ 3,159 Cash and cash equivalents and other sources of liquidity (1) (2) $ 6,191 $ 5,817 $ 4,873 Cash and cash equivalents and other sources of liquidity - % total assets (1) (2) 15.7 % 14.5 % 12.8 %

Cash and cash equivalents and other sources of liquidity - % total assets less  goodwill and intangible assets (1) (2)

16.5 % 15.2 % 13.4 %   Financial instruments owned (1) $ 14,037 $ 13,881 $ 14,328 Goodwill and intangible assets (1) $ 1,841 $ 1,844 $ 1,856   Total equity (including noncontrolling interests) (1) $ 5,655 $ 5,565 $ 5,327 Total Jefferies Group LLC member's equity (1) $ 5,654 $ 5,565 $ 5,321 Tangible Jefferies Group LLC member's equity (1) (3) $ 3,813 $ 3,721 $ 3,465    

Level 3 financial instruments:

Level 3 financial instruments owned (1) (4) $ 348 $ 310 $ 434 Level 3 financial instruments owned - % total assets 0.9 % 0.8 % 1.1 % Level 3 financial instruments owned - % total financial instruments (1) 2.5 % 2.2 % 3.0 %

Level 3 financial instruments owned - % tangible Jefferies Group LLC member's  equity

9.1 % 8.3 % 12.5 %  

Other data and financial ratios:

Total long-term capital (1) (5) $ 11,038 $ 10,762 $ 10,803 Leverage ratio (1) (6) 7.0 7.2 7.2 Tangible gross leverage ratio (1) (7) 9.8 10.3 10.5   Number of trading days 65 64 65 Number of trading loss days 3 3 8 Average firmwide VaR (8) $ 6.51 $ 9.21 $ 6.62   Number of employees, at period end 3,438 3,324 3,323     JEFFERIES GROUP LLC AND SUBSIDIARIES FINANCIAL HIGHLIGHTS - FOOTNOTES   (1) Amounts pertaining to August 31, 2017 represent a preliminary estimate as of the date of this earnings release and may be revised in our Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2017.   (2) At August 31, 2017, other sources of liquidity include high quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government securities of $1,083 million, in aggregate, and $301 million, being the estimated amount of additional secured financing that could be reasonably expected to be obtained from our financial instruments that are currently not pledged after considering reasonable financing haircuts. The corresponding amounts included in other sources of liquidity at May 31, 2017 were $1,149 million and $311 million, respectively, and at August 31, 2016, were $1,384 million and $330 million, respectively.   (3) Tangible Jefferies Group LLC member's equity (a non-GAAP financial measure) represents total Jefferies Group LLC member's equity less goodwill and identifiable intangible assets. We believe that tangible Jefferies Group LLC member's equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible equity, making these ratios meaningful for investors.   (4) Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.   (5) At August 31, 2017, May 31, 2017 and August 31, 2016, total long-term capital includes our long-term debt of $5,383 million, $5,197 million and $5,476 million, respectively, and total equity. Long-term debt included in total long-term capital is reduced by the amount of debt maturing in less than one year, as applicable.   (6) Leverage ratio equals total assets divided by total equity.   (7) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and identifiable intangible assets divided by tangible Jefferies Group LLC member's equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.   (8) VaR estimates the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value-at-Risk" in Part II, Item 7 "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the year ended November 30, 2016.

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Jefferies Group LLCPeregrine C. Broadbent, 212-284-2338Chief Financial Officer