This paper presents a new method to simultaneously perform 20 dB acoustic echo cancellation and 10 dB speech enhancement utilizing an adaptive microphone array. The system is based on a fast and efficient on-site calibration. Primarily intended for handsfree telephones in automobiles, the microphone array system simultaneously emphasizes the near-end talker and suppresses the handsfree loudspeaker and car noise. The method can also be used in other situations such as conventional speaker phones.