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Solar Energy Expected to Be Cost Competitive in Less Than 10 Years According to a Majority of Conference Participants Polled

Posted on: Monday, 19 June 2006, 12:00 CDT

NEW YORK, June 19 /PRNewswire/ -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. , today announced the results of a survey conducted at the Jefferies Alternative Energy and Cleantech Conference. More than half of those surveyed believe solar power will be cost competitive with grid-generated electricity by 2015, while only one quarter said solar would be competitive by 2010. These survey results are a sampling of alternative energy-related findings uncovered at the recent conference, which was held last month in New York City.

"Although solar energy is a feasible and positive alternative-energy option, the industry is still in the early stages of growth," commented Jeffrey H. Lipton, Managing Director of Cleantech Investment Banking at Jefferies. "The supply of silicon continues to be the largest barrier to growth, and that trend is expected to continue for the next couple of years. However, current incentive structures will drive production and economies of scale which will ultimately lower costs. Also, a number of new and interesting technologies are likely to emerge."

Results from the Jefferies survey showed that: * 51 percent of participants surveyed said they believe solar energy will be cost competitive with grid-generating electricity by 2015 * 24 percent of participants surveyed said they believe solar energy will be cost competitive with grid-generating electricity by 2010 * 64 percent of participants believe that fuel cells will become commercially viable in the area of portable applications, including laptops and cell phones * 42 percent said fuel cells will become marketable in automobiles * 17 percent said fuel cells will become marketable in power plants

"Venture-capital investment in cleantech is expanding, with annual dollar volume expected to hit approximately $2 billion in 2006, compared with just $730 million in 2001," said Lipton. "In addition, more and more companies are receiving venture-capital funding every quarter, with the average deal size at approximately $6.6 million in 2005, compared with $6.0 million in 2002."

Jefferies' Alternative Energy and Cleantech Conference drew over 450 attendees from leading alternative energy companies, institutional investors, hedge funds and government agencies. More than 30 companies presented on topics surrounding alternative energy and clean technology, including speakers from DuPont and General Electric, making the conference one of the largest gatherings of cleantech and alternative energy professionals to date.

"A real and sustainable rapidly growing sector is emerging in the area of alternative energy and clean technology," added Lipton. "The level and breadth of interest at this conference illustrates that this sector is no longer limited to a small universe of investors."

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for over 40 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; http://www.jefferies.com/).

CONTACT: Jefferies: Tom Tarrant Cubitt Jacobs & Prosek: Lauren Carmody (203) 708-5989 (203) 378-1152 / Ext.106 ttarrant@jefferies.com Lauren@cjpcom.com

Jefferies & Company, Inc.

CONTACT: Tom Tarrant of Jefferies, +1-203-708-5989, orttarrant@jefferies.com; or Lauren Carmody of Cubitt Jacobs & Prosek forJefferies, +1-203-378-1152, Ext.106, or Lauren@cjpcom.com

Web Site: http://www.jefferies.com/

Source: PRNewswire

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