There is disclosed a speech processor for aiding persons with sensorineural hearing loss accompanied by recruitment. The apparatus processes speech into two channels by use of a low pass and a high pass filter. Each channel includes a compressor unit which serves to compress or expand speech according to predetermined frequency sensitive ratios. The outputs of the compressors are combined in a frequency equalizer network to provide a compensated signal which is directed to a hearing aid transducer to enable an improved response for a user. The disclosure also includes a two channel system which may be employed for designing and formulating specific characteristics for hearing aids for the handicapped.