FOR IMMEDIATE RELEASE

Jefferies Group, Inc. Sells $325 Million in Senior Notes

NEW YORK, Mar 7, 2002 (BUSINESS WIRE) -- Jefferies Group, Inc. (NYSE:JEF) announced today the sale of $325 million aggregate principal amount of unsecured 7 3/4% senior notes due March 15, 2012.

The notes were priced to yield 8.09% at a spread of 290 basis points over the comparable U.S. Treasury bond. The notes are rated Baa3 by Moody's and BBB- by Standard & Poor's.

"This offering will provide Jefferies with a strong long-term capital base to continue the expansion of our company," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.

"We remain committed to building our banking, asset management, research, sales and trading businesses to better serve our mid-cap investors and issuers," added John C. Shaw, Jr., President of Jefferies.

Salomon Smith Barney (Books) and Jefferies & Company, Inc. are the joint lead managers. BNY Capital Markets, Inc. is acting as co-manager on the transaction. A prospectus supplement may be obtained from Salomon Smith Barney's Prospectus Department at the Brooklyn Army Terminal, which is located at 140 58th Street, 8th Floor, Brooklyn, NY 11220.

About Jefferies

Jefferies Group, Inc. and its subsidiaries operate as an international investment bank that focuses on capital raising, research, mergers and acquisitions, and advisory and restructuring services for middle market companies and on trading in equity and high yield securities, convertible bonds, options, futures and international securities for institutional clients. The company and its various subsidiaries maintain 20 offices worldwide, including Atlanta, Boston, Chicago, Dallas, Hong Kong, London, Los Angeles, New York, Paris, San Francisco, Tokyo and Zurich.

This press release does not constitute an offer to sell any securities for sale which can only be made by the prospectus supplement.

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