FOR IMMEDIATE RELEASE

Jefferies Announces Fourth Quarter and Year-End Financial Results; Achieves Third Consecutive Record Annual Earnings of $63 Million in 2002

NEW YORK--(BUSINESS WIRE)--Jan. 22, 2003--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the fourth quarter and year ended December 31, 2002.

Highlights for the fourth quarter ended December 31, 2002:

• Net earnings were $15.5 million, compared to $11.8 million in the third quarter and $16.7 million for the fourth quarter of 2001.
• Earnings per share (diluted) were $0.56 versus $0.43 in the third quarter and $0.61 for the fourth quarter of 2001.
• Total revenues were $179.4 million, compared to $179.2 million in the third quarter and $193.7 million for the fourth quarter of 2001.

Highlights for the year ended December 31, 2002:

• Earnings before extraordinary items increased 6% to a record $63.1 million compared to $59.5 million for 2001.
• Net earnings increased 5% to a record $62.6 million versus $59.5 million in 2001.
• Earnings per share (diluted) before extraordinary items were a record $2.29 compared to $2.28 for 2001.
• Total revenues were $754.8 million, versus $785.0 million for 2001.
• Investment banking revenues increased 13% to $140 million compared to $124 million in 2001.

"We are very pleased to report record financial results during a year in which we made substantial investments in the Jefferies platform," said Richard B. Handler, Chief Executive Officer of Jefferies. "With the addition of many veteran professionals across Jefferies' investment banking, sales and trading, asset management and research areas, we are in the best position ever to serve our clients."

"In 2002 we significantly expanded the depth and breadth of our ability to execute in the capital markets," added John C. Shaw, Jr., President of Jefferies. "The acquisition of Quarterdeck Investment Partners, as well as groups from Robertson Stephens, Herzog and ABN Amro, have broadened the Jefferies network and the capabilities we offer to our clients."

Conference Call

A conference call with management discussion of financial results for the fourth quarter ended December 31, 2002 will be held January 22 at 11 AM (Eastern) and can be accessed at 706-679-3621. A live audio Webcast and delayed replay will also be available under "Financials" at www.jefco.com. Questions for consideration by management can be submitted in advance through the "Contact Us" function at www.jefco.com or by calling 203-708-5975 by 9 AM Eastern on January 22.

About Jefferies

Jefferies Group, Inc. (NYSE: JEF) is a holding company whose affiliated companies, including its principal operating subsidiary, Jefferies & Company, Inc., offer a variety of services for institutional investors and growth companies. Subsidiaries of Jefferies Group, Inc., together, comprise 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' subsidiary, Helfant Group, Inc., executes approximately twelve percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,350 people in 21 offices worldwide, including Atlanta, Boston, Chicago, Dallas, Hong Kong, London, Los Angeles, New York, Paris, San Francisco, Tokyo, Washington 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.

This press release contains statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may contain expectations regarding revenues, earnings, operations and other financial projections, and may include statements of future performance, positioning, plans and objectives. These forward-looking statements include the word "continue" and other similar expressions. These forward-looking statements represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Actual results could differ materially from those projected in these forward-looking statements. Please refer to our recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2002 and other filings we make with the Securities and Exchange Commission for a discussion of important factors that could cause actual results to differ materially from those projected in these forward-looking statements. We do not assume any obligation to update any forward-looking statement we make.

Press Release in PDF format (financials included)

CONTACT:
Jefferies Group, Inc., New York
Joseph A. Schenk, 212/284-2338