FOR IMMEDIATE RELEASE

Jefferies Hires Research Analyst to Focus on Post-Reorganization Equity Securities

NEW YORK, September 30, 2003 -- Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced the hiring of Farukh Z. Farooqi, Post-Reorganization Equity Analyst. Mr. Farooqi will follow post-reorganization equity securities as part of the firm's overall focus on the restructuring area.

The creation of this position will enable Jefferies to leverage the insights and relationships gained from the firm's strong standing in special situations and Bulletin Board trading. The addition of a post-restructuring equity specialist extends Jefferies' commitment to distressed middle-market companies for the benefit of institutions that invest in them. In the fall of 2002, Jefferies added a Bulletin Board desk to its equity trading platform to better serve clients focused on special situations and the securities of distressed companies in or out of the bankruptcy process.

"We are extremely pleased to announce the hiring of Farukh Farooqi as a new analyst focusing on post-restructured equities," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "The creation of this position is the logical expansion of our efforts to integrate our equity and debt capital markets capabilities as we institutionalize the investment process in the distressed arena."

"With Jefferies' status as a leading trader of distressed and post Chapter 11 debt and equity securities, this hire will help to combine the resources of our powerful high yield and equity trading operations in the form of a research product to assist both fixed income and equity investors," said John C. Shaw, Jr., President of Jefferies. "Our clients will benefit from a better understanding of the opportunities in post-restructured equities as we continue to provide them with substantial liquidity through Jefferies' leading market making and trading of these equities."

Mr. Farooqi, age 38, was most recently at Merrill Lynch for four years, where he followed conglomerate companies as a Senior Analyst in the Multi-Industry Sector. Previously, he was an analyst at Lehman Brothers where he also followed conglomerates.

Mr. Farooqi will report to Steven R. Black, Director of Equity Research, and will work closely with Jefferies' High Yield professional Joseph P. von Meister, Senior Analyst of Distressed and Special Situations. He will be based in the firm's Short Hills, New Jersey office.

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 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.