FOR IMMEDIATE RELEASE

Jefferies Announces All-Time Record Quarterly Results; Record $524 million in Quarterly Total Revenues; Record $415 million in Quarterly Net Revenues; Record $58 million in Quarterly Net Earnings

NEW YORK--(BUSINESS WIRE)--April 18, 2006--

Record $0.82 Quarterly EPS; Asset Management Revenues of $44 million for the quarter; Trading Revenues of $238 million for the quarter

Jefferies Group, Inc. (NYSE:JEF) today announced record quarterly financial results for the quarter ended March 31, 2006.

Highlights for the record first quarter ended March 31, 2006:

• Net revenues were up 45% to a record $415.4 million versus $286.0 million for the first quarter of 2005.
• Net earnings were up 59% to a record $58.4 million compared to $36.7 million for the first quarter of 2005.
• Earnings per share (diluted) were up 46% to a record $0.82 compared to $0.56 for the first quarter of 2005. This increase in earnings per share included $0.02 related to the cumulative effect of a change in accounting principle, net of tax.
• Asset management related revenues were up 108% to a record $44.2 million versus $21.3 million for the first quarter of 2005.
• Total trading revenues were up 64% to a record $238.4 million versus $141.6 million for the first quarter of 2005.
• Investment banking revenues were $127.7 million versus $117.4 million for the first quarter of 2005.

"Our 2,030 employee-partners are pleased to deliver these results for our shareholders, and we would all like to thank our loyal clients for their continued support," commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies.

Conference Call

A conference call with management discussion of financial results for the first quarter ended March 31, 2006 will be held April 18 at 9:00 AM Eastern and can be accessed at 617-801-9714 (code: 65606185). A replay of the call will be available two hours post-call at 617-801-6888 (code: 29475499). 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 April 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
Joseph A. Schenk, 212-284-2338

SOURCE: Jefferies Group, Inc.