FOR IMMEDIATE RELEASE

Jefferies Group, Inc. Announces Second Quarter and Record First Half Results

NEW YORK--(BUSINESS WIRE)--July 16, 2002--Jefferies Group, Inc. (NYSE:JEF) today announced financial results for the second quarter and first half ended June 28, 2002.

Highlights for the second quarter ended June 28, 2002:

• Earnings per share (diluted) before an extraordinary item increased 2% to a record $0.66 compared to $0.65 for the second quarter of 2001. After the extraordinary item, earnings per share (diluted) were $0.64 for the quarter.
• Earnings before an extraordinary charge increased 9% to a record $18.1 million compared to $16.6 million for the second quarter of 2001.
• Net earnings were $17.6 million, a 6% increase over the $16.6 million recorded for the second quarter of 2001.
• The extraordinary item relates to a $480,000 after-tax charge from the early extinguishment of $50 million face value of 8?% senior notes due 2004.
• Total revenues were $200.9 million compared to $215.9 million for the second quarter of 2001.

Highlights for the first six months ended June 28, 2002:

• Earnings per share (diluted) before the extraordinary item increased 3% to a record $1.31 compared to $1.27 for the first half of 2001. After the extraordinary item, earnings per share (diluted) were a record $1.29.
• Earnings before the extraordinary item increased 11% to a record $35.8 million compared to $32.2 million for the first half of 2001.
• Record net earnings were $35.3 million, a 9% increase over the $32.2 million in net earnings for the first half of 2001.
• Total revenues were $396.2 million compared to $425.6 million for the first half of 2001.
• Corporate finance revenues jumped 30% to $79.3 million compared to $61.1 million for the first half of 2001.

"We are pleased to report solid earnings for the second quarter and a record first half as we continue to face brutal financial markets," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "Our strategy to be a full-service investment bank focusing on middle-market companies is enabling us to weather this challenging environment. Although the markets are in disarray, Jefferies' competitive position has never been better," he added.

"We are proud of the results throughout our trading platform. The loyalty and trust of our customers has permitted us to gain market share in a terrible environment," commented John C. Shaw, Jr., President of Jefferies. "Trading remains the backbone of Jefferies' business and enables us to continue to build out our banking and research efforts."

Conference Call

A conference call with management discussion of financial results for the second quarter ended June 28, 2002 will be held July 16 at 11:30 AM (Eastern) and can be accessed at 706-679-3621. A week-long replay will be available within two hours at 706-645-9291 (ID: 4463516). A live audio Webcast and delayed replay will also be available under "Investor Relations / 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 July 16.

About Jefferies

Jefferies Group, Inc. (NYSE: JEF) is a holding company whose affiliated companies, including its principal operating subsidiary, Jefferies & Company, Inc., offer a variety of services for institutional investors and growth companies. Subsidiaries of Jefferies Group, Inc., together, comprise a full-service investment bank and institutional securities firm focused on the middle market. Jefferies offers financial advisory, capital raising, mergers and acquisitions, and restructuring services to small and mid-cap companies. The firm provides outstanding trade execution in equity, high yield, convertible and international securities, as well as fundamental research and asset management capabilities, to institutional investors. Additional services include correspondent clearing, prime brokerage and securities lending. The firm's leadership in equity trading is recognized by numerous consulting and survey organizations, and Jefferies' subsidiary, Helfant Group, Inc., executes approximately ten percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 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 about Jefferies, including a description of investment banking, trading, research and asset management services, 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