FOR IMMEDIATE RELEASE

Jefferies Announces All-Time Record Quarterly Profit and Fifth Consecutive Annual Record Results

NEW YORK, Jan 19, 2005 (BUSINESS WIRE) -- In BW5374 issued Jan. 19, 2005: The Forward-Looking Statements have been revised. No financial information has been amended.

The corrected release reads:

JEFFERIES ANNOUNCES ALL-TIME RECORD QUARTERLY PROFIT AND FIFTH CONSECUTIVE ANNUAL RECORD RESULTS

• All-time record quarterly earnings of $35.4 million and $0.55 EPS for fourth quarter
• Record investment banking revenues of $106 million in fourth quarter and $353 million for 2004
• Record $1.2 billion in annual revenues and record $2.06 EPS for 2004

Jefferies Group, Inc. (NYSE: JEF) today announced record annual and fourth quarter financial results for the year and quarter ended December 31, 2004.

Highlights for the fourth quarter ended December 31, 2004:

• Total revenues were up 12% to a record $325.3 million versus $289.3 million for the fourth quarter of 2003.
• Net earnings were up 16% to a record $35.4 million compared to $30.6 million for the fourth quarter of 2003.
• Earnings per share (diluted) were up 10% to a record $0.55 compared to $0.50 for the fourth quarter of 2003.
• Total trading revenues were $139.1 million versus $150.0 million for the fourth quarter of 2003.
• Investment banking revenues were a record $105.7 million versus $98.7 million for the fourth quarter of 2003.
• Asset management related revenues were up 127% to a record $27.2 million versus $12.0 million for the fourth quarter of 2003.

Highlights for the record year ended December 31, 2004:

• Total revenues were a record $1.2 billion versus $926.7 million for 2003.
• Net earnings were up 56% to a record $131.4 million compared to $84.1 million for 2003.
• Earnings per share (diluted) were up 45% to a record $2.06 compared to $1.42 for 2003.
• Total trading revenues were a record $617.1 million versus $551.5 million for 2003.
• Investment banking revenues were a record $352.8 million versus $229.6 million for 2003.
• Asset management related revenues were up 148% to a record $81.2 million versus $32.8 million for 2003.

"We are proud that the Jefferies' platform continues to grow and diversify, as demonstrated by these record results," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "We remain focused on providing the best products and services to mid-sized and growing companies and their investors."

John C. Shaw, Jr., President of Jefferies, added, "We thank all of our clients, employee partners, and shareholders for their loyal and ongoing support, which has enabled us to continually invest in our platform."

Conference Call

A conference call with management discussion of financial results for the fourth quarter and year ended December 31, 2004 will be held January 19 at 11:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 28268944). A replay of the call will be available two hours post-call at 617-801-6888 (code: 89201014). 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 19.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served mid-sized and growing companies and their investors for over 40 years. Headquartered in New York, with more than 25 offices around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm is a leading provider of trade execution in equity, high yield, convertible and international securities for institutional investors and high net worth individuals. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF; www.jefco.com).

Forward-Looking Statements

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 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements about our future and may contain expectations regarding revenues, earnings, operations and other financial projections, and may include statements of our operating environment, future performance, positioning, plans and objectives. 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 November 8, 2004 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.

Press Release in PDF format (financials included)

SOURCE: Jefferies Group, Inc.

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