FOR IMMEDIATE RELEASE

Jefferies Names Jim Nikolai Chief Administrative Officer; New Position Brings Together Clearing, Execution, Lending and Technology

NEW YORK, Oct 10, 2002 (BUSINESS WIRE) -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE:JEF), today announced that James D. Nikolai has been appointed Chief Administrative Officer.

Mr. Nikolai, who joined the firm in 1996, will continue to report to John C. Shaw, Jr., President of Jefferies.

As Chief Information Officer, a position he held since late 1999, Mr. Nikolai has helped to develop a flexible and cost efficient technology and processing infrastructure at Jefferies. Under his leadership in technology, the firm has cost-effectively incorporated all industry and regulatory initiatives, while at the same time extended systems to meet the needs of ongoing growth and expansion through additional offices and new businesses.

The creation of this additional position brings together Jefferies' Correspondent Clearing, Execution, and Securities Lending businesses, as well as all technology initiatives at the firm.

"Jim Nikolai has transformed Jefferies' Technology Group from a support function to a solution and growth engine for the front-end of our business," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "As we continue to build our firm, integration and coordination become more important to meeting the ever-growing demands of clients."

"Clearing, Execution, Securities Lending and Technology are as important to our future as our other revenue-generating businesses," said Mr. Shaw. "Jim has proven his effectiveness as a manager by containing costs and eliminating redundancy through the creation of cohesive and efficient processes. His skill and experience uniquely qualify Jim to handle these new responsibilities," he added.

About Jefferies

Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE:JEF), is a full-service investment bank and institutional securities firm focused on the middle market. Jefferies offers financial advisory, capital raising, mergers and acquisitions, and restructuring services to small and mid-cap companies. The firm provides outstanding trade execution in equity, high yield, convertible and international securities, as well as fundamental research and asset management capabilities, to institutional investors. Additional services include correspondent clearing, prime brokerage, private client services and securities lending. The firm's leadership in equity trading is recognized by numerous consulting and survey organizations, and Jefferies' affiliate, Helfant Group, Inc., executes approximately 10% of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,300 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 a description of investment banking, trading, research and asset management services, can be found at www.jefco.com.

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