FOR IMMEDIATE RELEASE

Jefferies Group Announces Record Quarterly Revenues and Net Earnings

NEW YORK--(BUSINESS WIRE)--July 15, 2003--Jefferies Group, Inc. (NYSE: JEF) today announced record financial results for the second quarter ended June 27, 2003.

Highlights for the second quarter ended June 27, 2003:

• Earnings per share (diluted) of $0.65 matched a previous record and exceeded the $0.64 earned in the second quarter of 2002.
• Net earnings were a record $18.7 million compared to $17.6 million for the second quarter of 2002.
• Total revenues were a record $230.2 million versus $200.9 million for the second quarter of 2002.
• Earnings before income taxes and minority interest were a record $32.3 million compared to $29.9 million for the second quarter of 2002.
• Investment banking revenues were $44.7 million compared to $41.7 million for the second quarter of 2002.

Highlights for the first six months ended June 27, 2003:

• Earnings per share (diluted) were $1.14 versus $1.29 for the first half of 2002.
• Net earnings were $32.9 million compared to $35.3 million for the first half of 2002.
• Total revenues were $415.5 million compared to $396.2 million for the first half of 2002.
• Earnings before income taxes and minority interest were $55.6 million compared to $59.9 million for the first half of 2002.
• Investment banking revenues were $88.9 million compared to $79.3 million for the first half of 2002.

"We are pleased with the quality and breadth of our second quarter results. We plan to continue to invest in our platform with the goal to be the best provider of services for middle market companies and investors," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.

"The human capital that we've added throughout our firm over the past few years made a meaningful contribution this quarter," added John C. Shaw, Jr., President of Jefferies. "Our people are our most important asset, and we will continue to do our best to challenge and motivate our existing partners while attracting the best talent to our team."

Conference Call

A conference call with management discussion of financial results for the second quarter ended June 27, 2003 will be held July 15 at 11 AM (Eastern) and can be accessed at 617-801-9714 (live code: 22871334). A replay of the call will be available through July 22 at 617-801-6888 (replay code: 465059). A live audio Webcast and delayed replay will also be available at www.jefco.com and www.streetevents.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 10 AM Eastern on July 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 more than eleven percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,350 people in 20 offices worldwide, including Atlanta, Boston, Chicago, Dallas, 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 contain expectations regarding operations and our statements about plans and objectives. These forward-looking statements include the words "will," "continue", "plan" 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 May 9, 2003 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.

PLEASE NOTE: Share and per share information in this press release have not been restated to retroactively reflect the effect of the 2-for-1 stock split declared by the Board of Directors payable to stockholders of record as of July 31, 2003.

Press Release in PDF format (financials included)

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

SOURCE: Jefferies Group, Inc.