FOR IMMEDIATE RELEASE

Jefferies Group Announces Second Quarter Results

Revenues, Net Earnings and Earnings Per Share up 20%, 70% and 56%, Respectively

NEW YORK--(BUSINESS WIRE)--July 13, 2004--Jefferies Group, Inc. (NYSE: JEF) today announced financial results for the second quarter ended June 25, 2004.

Highlights for the second quarter ended June 25, 2004:

• Total revenues were up 20% to $277.2 million versus $230.2 million for the second quarter of 2003.
• Net earnings were up 70% to $31.8 million compared to $18.7 million for the second quarter of 2003.
• Earnings per share (diluted) were up 56% to $0.50 compared to $0.32 for the second quarter of 2003.
• Total trading revenues were up 1% to $148.0 million versus $146.2 million for the second quarter of 2003.
• Investment banking revenues were up 87% to $83.6 million versus $44.7 million for the second quarter of 2003.
• Asset management related revenues were up 169% to $18.8 million versus $7.0 million for the second quarter of 2003.

Highlights for the first six months ended June 25, 2004:

• Total revenues were up 40% to $580.3 million versus $415.5 million for the first half of 2003.
• Net earnings were up 94% to $63.7 million compared to $32.9 million for the first half of 2003.
• Earnings per share (diluted) were up 75% to $1.00 compared to $0.57 for the first half of 2003.
• Total trading revenues were up 18% to $306.7 million versus $260.7 million for the first half of 2003.
• Investment banking revenues were up 97% to $174.9 million versus $88.9 million for the first half of 2003.
• Asset management related revenues were up 302% to $42.6 million versus $10.6 million for the first half of 2003.

"This strong performance is a result of our commitment to diversify revenues as we continue to develop our strategy to serve middle market and growth companies and their investors," said Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. "As always, we wish to thank our clients, shareholders and employees for their support."

"We see a continuing opportunity to consolidate and lead middle market trading, investment banking, and asset management," added John C. Shaw, Jr., President of Jefferies.

Conference Call

A conference call with management discussion of financial results for the second quarter and first half ended June 25, 2004 will be held July 13 at 11:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 93408551). A replay of the call will be available two hours post-call at 617-801-6888 (code: 23435057). A live audio Webcast and delayed replay will also be available under "Investor Relations" at www.jefco.com. Questions for consideration by management can be submitted in advance through the "Contact Us" function at www.jefco.com or by calling 203-708-5975 by 9:30 AM Eastern on July 13.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served middle-market and growth companies and their investors for over 40 years. Headquartered in New York with more than 20 offices around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, research and asset management. The firm is a leading provider of trade execution in equity, high yield, convertible and international securities, serving institutional investors and high net worth individuals. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF; www.jefco.com), a publicly traded holding company.

Forward-Looking Statements

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 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements about our future and may contain expectations regarding revenues, earnings, operations and other financial projections, and may include statements of future performance, positioning, plans and objectives. 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 4, 2004 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.

Press Release in PDF format (financials included)

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

Source: Jefferies Group, Inc.