FOR IMMEDIATE RELEASE

Jefferies Expands Healthcare Investment Banking

NEW YORK, August 13, 2003 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of James T. Lilly, Jr. as a Managing Director in the firm's healthcare investment banking practice. The addition of Mr. Lilly expands Jefferies' industry coverage and provides leadership to Jefferies' existing healthcare group in the area of healthcare services.

"Jim Lilly is a highly experienced banker who will help to continue the significant growth realized during the past few years in Jefferies' investment banking effort," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "As many companies are increasingly underserved by Wall Street, we are working to become the leading firm serving middle-market companies and their investors."

"With his extensive track record and longstanding relationships, Jim enhances Jefferies' ability to serve the healthcare services industry with the firm's broad array of products," said John C. Shaw, Jr., President of Jefferies.

Mr. Lilly joins Jefferies from US Bancorp Piper Jaffray Inc., where he had been since 1992. He will work from Jefferies' headquarters office in New York.

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 eleven percent of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,350 people in 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.