FOR IMMEDIATE RELEASE

Jefferies Announces Record Quarterly Earnings Per Share Up 67% From Prior Year

NEW YORK, October 14, 2003 - Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the third quarter and nine months ended September 26, 2003.

Highlights for the third quarter ended September 26, 2003:

• Earnings per share (diluted) increased 67% to a record $0.35, exceeding the $0.21 earned in the third quarter of 2002.
• Net earnings were up 74% to a record $20.5 million compared to $11.8 million for the third quarter of 2002.
• Earnings before income taxes and minority interest grew 87% to a record $36.1 million compared to $19.3 million for the third quarter of 2002.
• Total revenues rose 24% to $221.9 million versus $179.2 million in the third quarter of 2002.
• Investment banking revenues climbed 43% to $42.0 million compared to $29.5 million for the third quarter of 2002.

Highlights for the first nine months ended September 26, 2003:

• Earnings per share (diluted) increased 7% to a record $0.92, exceeding the $0.86 earned in the first nine months of 2002.
• Net earnings were up 14% to a record $53.5 million compared to $47.1 million for the first nine months of 2002.
• Earnings before income taxes and minority interest grew 16% to a record $91.7 million compared to $79.2 million for the first nine months of 2002.
• Total revenues rose 11% to a record $637.5 million versus $575.4 million for the first nine months of 2002.
• Investment banking revenues climbed 20% to $130.9 million compared to $108.8 million for the first nine months of 2002.

"We had solid results with a significant number of our business units showing gains from the previous quarter as the capital markets and economy improved," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "We are particularly pleased with this quarter as it extends Jefferies' strong performance during the past three record years."

"Our investment in human capital over the past few years is paying dividends, and we remain focused on the expansion and diversification of the Jefferies platform," added John C. Shaw, Jr., President of Jefferies. "Our ability to attract and retain meaningful producers in each of our businesses continues to be key to our growth."

Conference Call

A conference call with management discussion of financial results for the third quarter ended September 26, 2003 will be held October 14 at 11:30 AM (Eastern) and can be accessed at 617-801-9714 (code: 22871334). A replay of the call will be available two hours post-call at 617-801-6888 (code: 14373162). A live audio Webcast and delayed replay will also be available under "Investor Relations" at www.jefco.com. Questions for consideration by management may be submitted in advance through the "Contact Us" function at www.jefco.com or by calling 203-708-5975 by 10 AM Eastern on October 14.

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 middle-market 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 approximately eleven percent of the daily reported volume of the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,400 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.

Press Release in PDF format (financials included)