FOR IMMEDIATE RELEASE

Jefferies Announces All-Time Records for Third Quarter and Nine-Month Total Revenues, Net Revenues, Net Earnings and EPS

NEW YORK--(BUSINESS WIRE)--Oct. 18, 2005--Jefferies Group, Inc. (NYSE: JEF) today announced record quarterly financial results for the quarter ended September 30, 2005.

Highlights for the record third quarter ended September 30, 2005:

• Total revenues were up 29% to $378.1 million versus $293.1 million for the third quarter of 2004.
• Net earnings were up 20% to $38.6 million compared to $32.3 million for the third quarter of 2004.
• Earnings per share (diluted) were up 12% to $0.57 compared to $0.51 for the third quarter of 2004.
• Investment banking revenues were up 49% to $107.6 million versus $72.1 million for the third quarter of 2004.

Highlights for the record first nine months ended September 30, 2005:

• Total revenues were up 22% to $1.1 billion versus $873.4 million for the first nine months of 2004.
• Net earnings were up 15% to $110.7 million compared to $96.0 million for the first nine months of 2004.
• Earnings per share (diluted) were up 9% to $1.64 compared to $1.51 for the first nine months of 2004.
• Investment banking revenues were up 33% to $327.5 million versus $247.1 million for the first nine months of 2004.

"We would like to thank our clients for their confidence, loyalty and belief in Jefferies. Additionally, we truly appreciate the effort, commitment and talent of our 2,001 employee partners who are the ones directly responsible for our success to date," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.

Conference Call

A conference call with management discussion of financial results for the third quarter ended September 30, 2005 will be held October 18 at 9:00 AM (Eastern) and can be accessed at 617-801-9714 (code: 18188135). A replay of the call will be available two hours post-call at 617-801-6888 (code: 92986930). 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 October 18.

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

SOURCE: Jefferies Group, Inc.