Jefferies' Stephen Gengaro Launches Oil Services Coverage; Initial List Includes Twelve Companies and Industry Report on Oil Services.

Business Editors

Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), today announced that Stephen D. Gengaro, Managing Director and Senior Equity Research Analyst, initiated coverage of twelve oil services companies this week.

Mr. Gengaro joined Jefferies in June to follow oil services companies.

Jefferies published an 80-page industry analysis, "Searching for Visibility," authored by Mr. Gengaro and his team. The study includes company profiles, stock recommendations and reports for the following companies: Baker Hughes (BHI), Schlumberger (SLB), Halliburton (HAL), Weatherford International (WFT), BJ Services (BJS), Cooper Cameron (CAM), Smith International (SII), Grant Prideco (GRP), Stolt Offshore (SOSA), Tidewater (TDW), Gulfmark Offshore (GMRK), and Trico Marine Services (TMAR).

"Stephen Gengaro has substantially broadened the scope of Jefferies' oil services industry coverage and extended the reach of our integrated research platform," remarked Steven R. Black, Director of Equity Research at Jefferies. "This analysis provides a fresh, comprehensive look at an industry that is undergoing significant turmoil from current geopolitical forces."

Mr. Gengaro has been covering the oil services industry for nearly a decade. He was named an All-Star Analyst in 1999 by The Wall Street Journal, securing the number one position for earnings estimate accuracy and the number two spot for stock picking skills. Mr. Gengaro also led a team that received an award for "Best Institution for Equity" as part of the annual Ship Finance Awards given by Lloyd's Shipping Economist in 1998. He was named 2000 Shipping Analyst of the Year by Marine Money magazine and in 2001 secured another position in The Wall Street Journal All-Star Analyst poll.

Prior to joining Jefferies, Mr. Gengaro worked as a Senior Research Analyst in the oil services group at ABN AMRO / ING Barings / Furman Selz. Previously, he was a member of the oil services research group at Salomon Brothers Inc. and, prior to that, at PaineWebber Inc.

Jefferies provides equity research for institutional investors in select industries in the Consumer, Energy, Financial Services, Gaming, Healthcare, Media, Retail, Technology, and Telecom sectors.

About Jefferies

Jefferies & Company, Inc., the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), is a full-service investment bank and institutional securities firm focused on the middle market. Jefferies offers financial advisory, capital raising, mergers and acquisitions, and restructuring services to small- and mid-cap companies. The firm provides outstanding trade execution in equity, high yield, convertible and international securities, as well as fundamental research and asset management capabilities, to institutional investors. Additional services include correspondent clearing, prime brokerage and securities lending. The firm's leadership in equity trading is recognized by numerous consulting and survey organizations, and Jefferies' affiliate, Helfant Group, Inc., executes approximately 10% of the daily reported volume on the NYSE.

Through its subsidiaries, Jefferies Group, Inc. employs more than 1,200 people in 20 offices worldwide, including Atlanta, Boston, Chicago, Dallas, Hong Kong, London, Los Angeles, New York, Paris, San Francisco, Tokyo and Zurich. Further information about Jefferies, including a description of investment banking, trading, research and asset management services, can be found at www.jefco.com.