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JEFFERIES ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS

NEW YORK, January 20, 2009 -- Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the fourth quarter and year ended December 31, 2008.

These results are consistent with the Firm’s preannouncement on December 3, 2008:

  • Reflecting the previously announced exceptional items
    • , primarily the non-cash impact of expensing prior years’ employee stock awards, the net loss for the fourth quarter of 2008 was $443 million, or $2.41 per share (diluted), and the net loss for the year was $538.8 million.
  • The fourth quarter net loss includes approximately $328 million (post tax) of exceptional items
    • , $303 million of which represents non-cash, post tax charges.

    “With unprecedented volatility and the worst year for the financial markets in our lifetime, Jefferies is fortunate to have emerged intact and healthy,” commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. “Our Company starts 2009 with its strongest opening balance sheet ever, and we now have a lower, more flexible and transparent cost structure as we work to serve our clients in 2009."

    Conference Call

    A conference call with management discussion of financial results for the fourth quarter ended December 31, 2008 will be held today, January 20, 2009, at 9:00 AM Eastern and can be accessed at 877-246-1929 or 706-634-9290. A one-week replay of the call will be available two hours post-call at 800-633-8284 or 402-977-9140 (reservation code # 21411093). A live audio webcast and delayed replay will also be available under “Investor Relations” at www.jefferies.com.

    About Jefferies

    Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for 45 years. Headquartered in New York, with offices in more than 25 cities 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).

    For further information, please contact:

    Peregrine C. Broadbent
    Chief Financial Officer
    (212) 284-2338

    Full press release (with all tables) in PDF format