FOR IMMEDIATE RELEASE

Jefferies Group Announces Fourth Quarter Earnings Up 30% and Record Full Year Revenue and Earnings

LOS ANGELES--(BUSINESS WIRE)--Jan. 24, 2002--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the fourth quarter and year ended December 31, 2001.

Highlights for the fourth quarter ended December 31, 2001:

• Total revenues rose 4% to $193.7 million, versus $186.2 million for the fourth quarter of 2000.
• Earnings before income taxes increased 28% to $28.6 million, compared to $22.3 million for the fourth quarter of 2000.
• Net earnings grew 30% to $16.7 million, compared to $12.9 million for the fourth quarter of 2000.
• Earnings per share (diluted) were $0.61 versus $0.52 for the fourth quarter of 2000.
• Corporate Finance revenues were up 130%; High Yield was up 56%; Convertibles were up 48%; Asset
• Management was up 8%; and, Equity and International revenues were down 4%.

Highlights for the year ended December 31, 2001:

• Total revenues rose 3% to a record $785.0 million, versus $761.9 million for 2000.
• Earnings before income taxes increased 8% to $102.7 million, compared to $95.4 million for 2000.
• Net earnings were up 8% to a record $59.5 million, compared to $55.0 million for 2000.
• Earnings per share (diluted) rose to a record $2.28 versus $2.26 for 2000.
• Corporate Finance revenues were up 37%; High Yield was up 57%; Convertibles were up 36%; Asset Management was up 85%; Equity revenues were flat; and, International revenues were down 21%.

"In addition to our overall positive performance, once again, our corporate finance, high yield and convertible departments made significant contributions this quarter," said Richard B. Handler, Chief Executive Officer of Jefferies. "We will continue to build upon these successes by hiring qualified professionals as we continue to build out our investment bank serving mid-cap issuers and investors."

"Given the challenges our industry faced in 2001, we are pleased that our equity business has been so resilient in adapting to the markets while maintaining a revenue base consistent with last year's record levels," added John C. Shaw, Jr., President of Jefferies. "These results demonstrate our ongoing commitment and ability to adapt to our marketplace and take advantage of the opportunities presented to us."

Conference Call

A conference call with management discussion of financial results for the fourth quarter and full year ended December 31, 2001 will be held January 24 at 11 AM (Eastern) and can be accessed at 703-871-3086. A live audio Webcast and delayed replay will also be available under "Financials" 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 contacting Amanda Bartley at 203-708-5975 by 10 AM Eastern on January 24.

About Jefferies

Jefferies Group, Inc. is a holding company whose affiliated companies, including its principal operating subsidiary, Jefferies & Company, Inc., offer a variety of services for institutional investors and mid-cap companies. Subsidiaries of Jefferies Group, Inc., together, comprise an institutional brokerage firm focused on trading in equity, high yield, convertible and international securities, as well as fundamental research for institutional investors. As an investment bank, Jefferies also offers capital raising, financial advisory, mergers and acquisitions, and restructuring services to middle market companies. Jefferies & Company, Inc. is an industry leader in equity trading services for institutional investors, as recognized by numerous consulting and survey organizations.

Jefferies Group, Inc. employs over 1,200 people in 20 offices worldwide, including Atlanta, Boston, Chicago, Dallas, Hong Kong, London, Los Angeles, New York, Paris, San Francisco, Tokyo and Zurich. Further information regarding Jefferies Group, Inc., including past press releases and historical financial statements, can be found at www.jefco.com.

Press Release in PDF format (financials included)

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