A novel method of performing acoustic echo canceling using microphone arrays is presented. The method employs a digital self-calibrating microphone system. The calibration process is a simple indirect on-site calibration that adapts to the particulars of the acoustic environment and the electronic equipment in use. Primarily intended for handsfree telephones in automobiles, the method simultaneously suppresses the handsfree loudspeaker and car noise. The system also continuously takes into account disturbances such as fan noise. Examples from an extensive evaluation in a car are also included. Typical performance results demonstrate 20-dB echo cancellation and 10-dB noise reduction simultaneously.