FOR IMMEDIATE RELEASE

Jefferies Announces First Quarter Earnings; Strong Investment Banking Offsets Industrywide Softness in Institutional Trading

NEW YORK, Apr 15, 2003 (BUSINESS WIRE) -- Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the first quarter ended March 28, 2003.

Highlights for the first quarter ended March 28, 2003:

• Net earnings were $14.2 million, versus $17.7 million for the first quarter of 2002.
• Earnings per share (diluted) were $0.50 compared to $0.65 in the first quarter of 2002.
• Total revenues were $185.3 million, versus $195.3 million for the first quarter of 2002.
• Investment banking revenues increased 17% to $44.2 million compared to $37.7 million in the first quarter of 2002.

"We are pleased with our diversification strategy as strong investment banking revenues in the first quarter offset softness in our institutional trading business," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "A 42% increase since the fourth quarter, and 17% year-over-year, reflect our efforts to build Jefferies' investment banking business."

"Jefferies' institutional equity trading platform performed well relative to other Wall Street firms whose comparable businesses were down significantly. The weakness was due to lower institutional trading volumes, lack of volatility, and war and business related uncertainty," added John C. Shaw, Jr., President of Jefferies.

Conference Call

A conference call with management discussion of financial results for the first quarter ended March 28, 2003 will be held April 15 at 10:30 AM Eastern and can be accessed at (617) 801-9714. A live audio Webcast and delayed replay will also be available under "Investor Relations/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 April 15.

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.

Press Release in PDF format (financials included)

Jefferies Group, Inc.
Joseph A. Schenk, 212/284-2338