FOR IMMEDIATE RELEASE

Bonds Direct Acquires Unit of Mellon Securities LLC

NEW YORK, Dec 16, 2003 (BUSINESS WIRE) -- Bonds Direct Securities LLC, a majority owned subsidiary of Jefferies Group, Inc. (NYSE: JEF), has acquired the fixed income desk of Mellon Securities LLC, a broker/dealer subsidiary of Mellon Financial Corporation's Human Resources & Investor Solutions. Terms of the agreement were not disclosed.

Lee Fensterstock, Chairman and Co-Chief Executive Officer of Bonds Direct, commented, "We are very excited to have the opportunity to add so many outstanding fixed income professionals to our company and look forward to servicing a significantly expanded client base."

Timothy E. Cronin, President and Co-Chief Executive Officer of Bonds Direct, added, "We look forward to working with Mellon's Human Resources & Investor Solutions business going forward and developing a strong and extended relationship with Mellon and their clients."

"We are extremely pleased with the success Bonds Direct has enjoyed over the course of the past two years," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies Group, Inc. "This strategic expansion of their business will be key to their success going forward."

About Bonds Direct

Bonds Direct Securities LLC provides investment grade fixed income transaction execution for institutions acting as principal, through a combination of professional sales and trading coverage, and a technology platform that enables true on-line real-time trading. The firm is majority-owned subsidiary of Jefferies Group, Inc. (NYSE: JEF), the parent company of Jefferies & Company, Inc., an investment bank and institutional securities firm serving middle market investors and companies. Bonds Direct has more than 50 fixed income professionals and is headquartered in New York with offices in Atlanta, Boston, Chicago, Los Angeles and San Francisco.

SOURCE: Jefferies Group, Inc.

Jefferies Group, Inc.
Tom Tarrant, 203-708-5989
ttarrant@jefco.com