FOR IMMEDIATE RELEASE

Jefferies Group, Inc. Sells $500 Million of 30-Year Senior Debentures

NEW YORK--(BUSINESS WIRE)--Jan. 20, 2006--Jefferies Group, Inc. (NYSE: JEF) announced today the sale of $500 million aggregate principal amount of its unsecured 6.25% 30-year senior debentures due January 15, 2036.

The debentures were priced to yield 6.302% at a spread of 175 basis points over the comparable U.S. Treasury bond and are rated Baa1/BBB/BBB+ (Moody's/Standard & Poor's/Fitch). The expected closing date is January 26, 2006.

Jefferies & Company, Citigroup, and Merrill Lynch & Co. are the joint book-running managers of this offering. Banc of America Securities LLC, BNY Capital Markets, Inc., Keefe, Bruyette & Woods, Wachovia Securities, BNP Paribas, HSBC and Societe Generale are acting as co-managers. A prospectus supplement may be obtained from Merrill Lynch & Co. at 4 World Financial Center, New York, New York 10080 or Citigroup at Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220.

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).

This press release does not constitute an offer to sell or a solicitation of an offer to buy the debentures nor shall there be any sale of the debentures in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Offers will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

CONTACT:
Jefferies Group, Inc.
Joseph A. Schenk, CFO
212-284-2338
jschenk@Jefferies.com

SOURCE: Jefferies Group, Inc.