FOR IMMEDIATE RELEASE

Jefferies Announces Second Quarter and First Half Results

NEW YORK--(BUSINESS WIRE)--July 19, 2005--Jefferies Group, Inc. (NYSE:JEF) today announced quarterly financial results for the quarter ended June 30, 2005.

Highlights for the second quarter ended June 30, 2005:

• Total revenues were up 24% to $344.2 million versus $277.2 million for the second quarter of 2004.
• Net earnings were up 11% to $35.4 million compared to $31.8 million for the second quarter of 2004.
• Earnings per share (diluted) were up 6% to $0.53 compared to $0.50 for the second quarter of 2004.
• Investment banking revenues were up 23% to $102.5 million versus $83.6 million for the second quarter of 2004.

Highlights for the first six months ended June 30, 2005:

• Total revenues were up 19% to a record $688.1 million versus $580.3 million for the first half of 2004.
• Net earnings were up 13% to a record $72.1 million compared to $63.7 million for the first half of 2004.
• Earnings per share (diluted) were up 8% to a record $1.08 compared to $1.00 for the first half of 2004.
• Investment banking revenues were up 26% to a record $220.0 million versus $174.9 million for the first half of 2004.

"We are pleased with our positive results and, despite a challenging environment, remain committed to expanding our platform as we continue to diversify all of our businesses," said Richard B. Handler, Chief Executive Officer of Jefferies. "Our more than 1,900 employee-partners will continue to tenaciously serve our clients and our shareholders."

Conference Call

A conference call with management discussion of financial results for the second quarter ended June 30, 2005 will be held July 19 at 9:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 85714055). A replay of the call will be available two hours post-call at 617-801-6888 (code: 69565267). A live audio webcast and delayed replay will also be available under "Investor Relations" at www.jefferies.com. Questions for consideration by management can be submitted in advance through the "Contact Us" function at www.jefferies.com or by calling 203-708-5975 by 8:45 AM Eastern on July 19.

About Jefferies

Jefferies, a global investment bank and institutional securities firm, has served growing and mid-sized companies and their investors for over 40 years. Headquartered in New York, with more than 25 offices around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. The firm is a leading provider of trade execution in equity, high yield, convertible and international securities for institutional investors and high net worth individuals. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE:JEF; www.jefferies.com).

Press Release in PDF format (financials included)

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

SOURCE: Jefferies Group, Inc.