FOR IMMEDIATE RELEASE

Jefferies Group Announces Record Quarterly Net Earnings

NEW YORK, Apr 17, 2002 (BUSINESS WIRE) -- Jefferies Group, Inc. (NYSE: JEF) today announced record net earnings for the first quarter ended March 29, 2002.

Highlights for the first quarter ended March 29, 2002:

• Net earnings were up 13% to a record $17.7 million compared to $15.7 million for the first quarter of 2001.
• Earnings per share (diluted) matched the record of $0.65 and exceeded the $0.63 for the first quarter of 2001.
• Earnings before income taxes were up 10% to $30.0 million compared to $27.1 million for the first quarter of 2001.
• Total revenues were $195.3 million compared to $209.7 million for the first quarter of 2001.
• Corporate finance revenues jumped 121% to $37.7 million compared to $17.0 million for the first quarter of 2001.

"As we continue to navigate through challenging times, we are pleased to be able to announce record net income for the first quarter," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "The extraordinary performance of Jefferies' corporate finance effort demonstrates both the success of our mid-cap strategy and the benefit of our diversified revenue base."

"Our first quarter results validate Jefferies' ability to adapt to the markets as we remain committed to serving mid-cap issuers and investors," added John C. Shaw, Jr., President of Jefferies. "We remain focused on our relationships and will continue to strategically build our firm."

Conference Call

A conference call with management discussion of financial results for the first quarter ended March 29, 2002 will be held April 17 at 11 AM (Eastern) and can be accessed at 706-679-3621. 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 April 17.

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 small- to 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., New York
Joseph A. Schenk, 212/284-2338