FOR IMMEDIATE RELEASE

Jefferies Names Richard B. Handler Chairman of Board Effective February 15, 2002

NEW YORK, Jan 30, 2002 (BUSINESS WIRE) -- Jefferies Group, Inc. (NYSE:JEF) announced today that Richard B. Handler, Chief Executive Officer, has been appointed Chairman of the Board effective February 15, 2002.

Mr. Handler, who is 40 years old and has been at Jefferies since 1990, succeeds Frank E. Baxter, 65. Mr. Baxter will continue as Chairman Emeritus, will finish his board term through May 23, 2002, and will not seek reelection to the Board.

"Frank Baxter has dedicated the last 27 years of his life to our firm, and we all owe him a great debt of gratitude," said Mr. Handler. "John Shaw and I are very excited to work with the Executive Committee and all our partners throughout Jefferies in continuing to build this special platform to best serve our mid-cap clients."

"We are very pleased to complete such a smooth transition in the leadership of Jefferies," added John C. Shaw, Jr., President of Jefferies. "Frank Baxter has done an excellent job of preparing our firm for even greater success in the future."

"I feel privileged to have been a part of such a strong firm for so many years," commented Mr. Baxter. "It is with confidence that I leave Jefferies on such a high note and in such capable hands."

For diversification purposes, Mr. Baxter has sold 500,000 shares of Jefferies Group, Inc. stock to the firm's deferred compensation plan. The Jefferies Deferred Compensation Plan is a key component of the firm's efforts to broaden employee ownership and motivate employee action that maximizes value for all shareholders. To date, the plan has resulted in the voluntary designation to purchase over $52 million of company stock and raised employee ownership above 52%.

About Jefferies

Jefferies Group, Inc. is a holding company whose affiliated companies, including its principal operating subsidiary, Jefferies & Company, Inc., offer a variety of services for institutional investors and small- to mid-cap companies. Subsidiaries of Jefferies Group, Inc., together, comprise an institutional brokerage firm focused on trading in equity, high yield, convertible and international securities, as well as fundamental research for institutional investors. As an investment bank, Jefferies also offers capital raising, financial advisory, mergers and acquisitions, and restructuring services to middle market companies. Jefferies & Company, Inc. is an industry leader in equity trading services for institutional investors, as recognized by numerous consulting and survey organizations.

Jefferies employs 1,200 people in 20 offices worldwide, including Atlanta, Boston, Chicago, Dallas, Hong Kong, London, Los Angeles, New York, Paris, San Francisco, Tokyo and Zurich. Further information about Jefferies, including past press releases and historical financial statements, can be found at www.jefco.com.

CONTACT:
Jefferies Group, Inc.
Tom Tarrant, 203/708-5989
ttarrant@jefco.com
www.jefco.com