FOR IMMEDIATE RELEASE

Jefferies Announces Fourth Consecutive Record Year; Fourth Quarter Total Revenues Up 61%, Earnings Per Share Up 79%

NEW YORK--(BUSINESS WIRE)--Jan. 20, 2004--Jefferies Group, Inc. (NYSE: JEF) today announced record financial results for the fourth quarter and year ended December 31, 2003.

Highlights for the fourth quarter ended December 31, 2003:

• Earnings per share (diluted) were up 79% to a record $0.50 compared to $0.28 for the fourth quarter of 2002.
• Net earnings were up 97% to a record $30.6 million compared to $15.5 million for the fourth quarter of 2002.
• Earnings before income taxes and minority interest were up 116% to a record $52.8 million compared to $24.5 million for the fourth quarter of 2002.
• Total revenues were up 61% to a record $289 million versus $179 million for the fourth quarter of 2002.
• Investment banking revenues climbed 217% to $98.7 million compared to $31.1 million for the fourth quarter of 2002.

Highlights for the year ended December 31, 2003:

• Earnings per share (diluted) were up 25% to a record $1.42 compared to $1.14 for 2002.
• Net earnings were up 34% to a record $84.1 million compared to $62.6 million for 2002.
• Earnings before income taxes and minority interest were up 39% to a record $144.5 million compared to $103.7 million for 2002.
• Total revenues were up 23% to a record $927 million compared to $755 million for 2002.
• Investment banking revenues were up 64% to a record $229.6 million compared to $139.8 million for 2002.

In a joint statement, Richard B. Handler, Chairman and Chief Executive Officer, and John C. Shaw, Jr., President, commented, "These results are only possible because of the loyal support of our clients and the dedication of our 1,600 employee-partners. We thank them all."

Conference Call

A conference call with management discussion of financial results for the fourth quarter ended December 31, 2003 will be held January 21 at 11:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 22871334). A replay of the call will be available two hours post-call at 617-801-6888 (code: 14373163). A live audio webcast and delayed replay will also be available under "Investor Relations" 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 9:30 AM Eastern on January 21.

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 middle-market 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 eleven percent of the daily reported volume of the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,600 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.

Press Release in PDF format (financials included)

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

SOURCE: Jefferies Group, Inc.