FOR IMMEDIATE RELEASE

Jefferies Focuses Effort in Information Technology Services

Investment Banking Shift Reflects Convergence in Commercial and Government IT Services

NEW YORK, May 8, 2003 (BUSINESS WIRE) -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the enhancement of the firm's capabilities to serve information technology services companies through the combination of its investment banking efforts in commercial IT services and government IT services.

Jefferies will merge the IT services efforts of its recently-acquired aerospace and defense specialty group, Quarterdeck Investment Partners, LLC, with a segment of the investment banking group that joined Jefferies from Robertson Stephens last fall.

"The information technology services sector is a fast growing, yet highly fragmented market that has been undergoing fundamental changes over the past year-and-a-half. With Jefferies' acquisition of Quarterdeck Investment Partners last year, our aerospace, defense and IT services effort is uniquely positioned to meet the needs of firms in this space," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "Through the consolidation of our IT services effort, we look forward to reinforcing the leadership position of Jefferies in the government IT marketplace, while enabling the further development of our commercial IT practice."

"The events of September 11, 2001 have prompted an increasing convergence between the government and commercial IT services markets, as the once extremely different capabilities, practices, and customers of companies operating in both areas blend together," said Jon B. Kutler, Chairman and CEO of Quarterdeck. "Many government IT companies have adopted commercial best practices to improve margins and implement new technologies. Commercial IT companies, meanwhile, have created federal practice areas and are seeking federal partners for their experience in accessing opportunities in the fast growing and more stable government funding environment. As a result, there is a tremendous opportunity for firms like Jefferies that are able to assist in this convergence."

To address the opportunities created by this convergence, Jefferies has realigned investment banking coverage for companies in the space. The firm's investment banking efforts in commercial IT services and government IT services will be consolidated into one group. Daniel R. Bryant, Senior Vice President, will lead the effort from the firm's Chicago office. He will report to Mr. Kutler.

About Jefferies

Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), is 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, private client services and securities lending. The firm's leadership in equity trading is recognized by numerous consulting and survey organizations, and Jefferies' affiliate, Helfant Group, Inc., executes approximately twelve percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,350 people in 21 offices worldwide, including Atlanta, Boston, Chicago, Dallas, Hong Kong, London, Los Angeles, New York, Paris, San Francisco, Tokyo, Washington 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.

SOURCE: Jefferies & Company, Inc.

Jefferies & Company, Inc.
Tom Tarrant
203/708-5989
ttarrant@jefco.com