FOR IMMEDIATE RELEASE

Jefferies Announces Sixth Consecutive Record Year with All-Time Records for Quarterly and Annual Results

NEW YORK--(BUSINESS WIRE)--Jan. 18, 2006--Jefferies Group, Inc. (NYSE: JEF):

• Record $1.5 Billion in Annual Total Revenues, $157 Million in Annual Net Earnings, and $2.32 in Annual EPS
• Fourth Quarter Record EPS of 68 Cents Per Share
• Investment Banking Revenues of $167 Million for the Quarter and $495 Million for the Year

Jefferies Group, Inc. (NYSE: JEF) today announced record quarterly financial results for the quarter ended December 31, 2005.

Highlights for the record fourth quarter ended December 31, 2005:

• Total revenues were up 33% to a record $431.7 million versus $325.3 million for the fourth quarter of 2004.
• Net earnings were up 32% to a record $46.7 million compared to $35.4 million for the fourth quarter of 2004.
• Earnings per share (diluted) were up 24% to a record $0.68 compared to $0.55 for the fourth quarter of 2004.
• Investment banking revenues were up 58% to $167.5 million versus $105.7 million for the fourth quarter of 2004.

Highlights for the record year ended December 31, 2005:

• Total revenues were up 25% to a record $1.5 billion versus $1.2 billion for 2004.
• Net earnings were up 20% to a record $157.4 million compared to $131.4 million for 2004.
• Earnings per share (diluted) were up 13% to a record $2.32 compared to $2.06 for 2004.
• Investment banking revenues were up 40% to a record $495.0 million versus $352.8 million for 2004.

"We are proud of our company and would like to thank each of our employee-partners, clients and investors for their strong support," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.

Conference Call

A conference call with management discussion of financial results for the fourth quarter and year ended December 31, 2005 will be held January 18 at 9:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 58602490). A replay of the call will be available two hours post-call at 617-801-6888 (code: 68173108). A live audio webcast and delayed replay will also be available under "Investor Relations" at www.jefferies.com. Questions for consideration by management can be submitted in advance through the "Contact Us" function at www.jefferies.com or by calling 203-708-5975 by 8:45 AM Eastern on January 18.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized 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.jefferies.com).

Press Release in PDF format (financials included)

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

SOURCE: Jefferies Group, Inc.