FOR IMMEDIATE RELEASE

Jefferies Announces 2-for-1 Stock Split, More Than Triples Quarterly Dividend

NEW YORK--(BUSINESS WIRE)--July 15, 2003--Jefferies Group, Inc. (NYSE:JEF) announced today that its Board of Directors approved a 2-for-1 split of all outstanding shares of the corporation's common stock, payable August 15, 2003 to stockholders of record as of July 31, 2003.

The stock split will be effected as a stock dividend of one share for each one share outstanding on the record date. The Board also approved a quarterly cash dividend of $0.08 per share on a post-split basis, up from $0.025 per share (post-split) paid in the prior quarter. The second quarter dividend will be payable on September 16, 2003 to stockholders of record as of August 26, 2003.

"The stock split will allow us to meaningfully increase the share float of Jefferies stock," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "We will continue to maintain our goal of high employee ownership."

"The tax law change has made it more economic for us to reward our shareholders with a higher after-tax yield on Jefferies stock," added John C. Shaw, Jr., President of Jefferies.

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, private client services 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 eleven percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,350 people in 20 offices worldwide, including Atlanta, Boston, Chicago, Dallas, 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.

This press release contains statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements contain expectations regarding our goals and objectives. These forward-looking statements include the word "will" and other similar expressions. These forward-looking statements represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. Actual results could differ materially from those projected in these forward-looking statements. Please refer to our recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 9, 2003 and other filings we make with the Securities and Exchange Commission for a discussion of important factors that could cause actual results to differ materially from those projected in these forward-looking statements. We do not assume any obligation to update any forward-looking statement we make.

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

SOURCE: Jefferies Group, Inc.