A microphone array speech enhancement algorithm based on analysis/synthesis filtering that allows for variable signal distortion. The algorithm is used to suppress additive noise and interference. The processing structure consists of delaying the received signals so that the desired signal components add coherently, filtering each of the delayed signals through an analysis filter bank, summing the corresponding channel outputs from the sensors, applying a gain function to the channel outputs, and combining the weighted channel outputs using a synthesis filter. The structure uses two different gain functions, both of which are based on cross correlations of the channel signals from the two sensors. The first gain yields the GEQ-I array, which performs best for the case of a desired speech signal corrupted by uncorrelated white background noise. The second gain yields the GEQ-II array, which performs best for the case where there are more signals than microphones. The GEQ-II gain allows for a trade-off on a channel-dependent basis of additional signal degradation in exchange for additional noise and interference suppression.