FOR IMMEDIATE RELEASE

Jefferies Hires Associate Director Of Equity Research

NEW YORK, October 20, 2003 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of Susan F. Gilbertson as Senior Vice President and Managing Director of Equity Research. She will report to and work with Steven R. Black, Director of Equity Research, in managing all aspects of the firm's Equity Research Department.

Jefferies' research effort was started in 1992 and has grown significantly since the firm hired Mr. Black in 1999. While equity research is the largest component of the firm's overall research effort, Jefferies also follows high yield, convertible and international securities. Most recently, Jefferies announced the addition of post-reorganization equity research in connection with its Bulletin Board trading effort and to complement the firm's high yield and distressed research of companies either in or recently out of the bankruptcy process.

"Susan Gilbertson is an exceptional professional whose outstanding experience and reputation on the Street will significantly enhance Jefferies' equity research effort," commented Mr. Black. "We will continue to expand our areas of research focus as we seek to offer the greatest value for institutional investors."

"I am excited by Jefferies' entrepreneurial culture and look forward to working with Steve Black in continuing to build one of the best fundamental research firms on the Street," said Ms. Gilbertson. "Jefferies' strong middle-market focus is full of opportunity given how this area has been overlooked by the rest of Wall Street."

Ms. Gilbertson has been involved in the securities industry for nearly twenty years. Prior to Jefferies, she served as Managing Director and Head of Equity Research at Cathay Financial LLC, and previously in similar positions at ABN AMRO Inc. Ms. Gilbertson also has related experience at Paribas Corporation, D.A. Campbell Co. Inc., and Bankers Trust. She is based in the firm's New York headquarters office.

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 eleven percent of the daily reported volume of the NYSE.

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