FOR IMMEDIATE RELEASE

Jefferies Group Announces Third Quarter Earnings Up 8% and Record Nine Month Results; Investment Banking Revenues Increase 31% and 30% for Third Quarter and Nine Months, Respectively

NEW YORK, Oct 22, 2002 (BUSINESS WIRE) -- Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the third quarter and first nine months ended September 27, 2002.

Highlights for the third quarter ended September 27, 2002:

• Earnings per share (diluted) increased 8% to $0.43 compared to $0.40 for the third quarter of 2001.
• Earnings before income taxes increased 5% to $19.3 million compared to $18.4 million for the third quarter of 2001.
• Net earnings increased 11% to a $11.8 million compared to $10.6 million for the third quarter of 2001.
• Total revenues increased 8% to $179.2 million compared to $165.6 million for the third quarter of 2001.
• Investment banking revenues increased 31% to $29.5 million compared to $22.5 million for the third quarter of 2001.

Highlights for the first nine months ended September 27, 2002:

• Record earnings per share before extraordinary items (diluted) increased 4% to $1.73 compared to $1.67 for the first nine months of 2001.
• Record earnings before income taxes and extraordinary items increased 8% to $80.0 million compared to $74.1 million for the first nine months of 2001.
• Record net earnings before extraordinary items increased 11% to $47.5 million compared to $42.9 million for the first nine months of 2001.
• Total revenues were $575.4 million compared to $591.2 million for the first nine months of 2001. Investment banking revenues jumped 30% to $108.8 million compared to $83.6 million for the first nine months of 2001.

"We are pleased to report higher quarterly results along with record year-to-date earnings, both of which were achieved with great effort and despite extremely difficult business conditions," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "Firmwide, we are committed to containing costs to improve our platform and build for the future."

"Given market conditions, the growth in Jefferies' equity trading and investment banking businesses during the period was exceptional," commented John C. Shaw, Jr., President of Jefferies. "We will continue to manage costs as we invest in our platform and remain focused on middle-market companies and investors. Our objective is to provide the best service to clients for the long-term," he added.

Conference Call

A conference call with management discussion of financial results for the third quarter ended September 27, 2002 will be held October 22 at 2 PM (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 calling 203-708-5975 by 1 PM Eastern on October 22.

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 more than ten percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,300 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