FOR IMMEDIATE RELEASE

Jefferies Expands Coverage Of Software Sector

John Segrich Initiates on Six European Software Companies

NEW YORK, August 1, 2003 -- Jefferies & Company, Inc. ("Jefferies"), the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF) and its UK affiliate, Jefferies International Ltd. ("JIL") today announced that John M. Segrich, Senior Vice President and Senior Equity Research Analyst, initiated coverage of six European software companies. Mr. Segrich joined Jefferies and JIL in May to cover the European Software, IT Services, and Semiconductor industries.

Jefferies in partnership with JIL published an industry analysis report authored by Mr. Segrich and his team. The study includes profiles, stock recommendations and reports for the following companies: SAP (SAP GR, SAP US), Business Objects, (BOB FP, BOBJ US), Dassault Systemes (DSY FP, DASTY US), Autonomy (AU/ LN, AUTN US), Sage (SGE LN), Software AG (SOW GR). The report provides investors with a strong framework to analyze software stocks in the current uncertain economic and IT spending environment, balancing the longer term success factors with shorter term concerns, and attempts to identify the winners of the next up-cycle.

"John's initiation of coverage significantly enhances Jefferies' global technology research effort. He has chosen some pivotal names in this space, four of which have ADR's" remarked Steven R. Black, Director of Equity Research at Jefferies. "We are continually looking for opportunities for our institutional investors both domestically and abroad, and this is a terrific addition," he added.

Jefferies is committed to the software space as it is a constantly evolving industry with tremendous growth potential, and is rich with small to mid-cap companies. Jefferies will continue to assess opportunities in this sector and expand its trading and market making capabilities for its institutional investors.

John M. Segrich, is dually registered with Jefferies and JIL as a Senior Equity Research Analyst and Senior Vice President, respectively. Mr. Segrich is a two-time Institutional Investor All Europe Analyst, having been selected in 2001 and 2002 as runner-up for his work in the software and IT services sectors. Mr. Segrich has been in the securities industry for 10 years. Prior to Jefferies, he was an Executive Director and European Software/Internet Research Analyst at Goldman Sachs. Previously, Mr. Segrich was an Executive Vice President and Internet Research Analyst at CIBC World Markets in New York.

Mr. Segrich is based in the London office of Jefferies International Ltd.

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 twelve percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs nearly 1,400 people in 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.