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This paper presents a real time implementation of a speech coder at 16 kbs. The compression algorithm is a combination of two previously reported techniques: Time Domain Harmonic Scaling and Adaptive Residual Coding. Several modifications are made to reduce the hardware complexity with minimal loss in speech quality, even in the presence of channel errors at a BER of 10-3. A single-board, real-time, full-duplex implementation is achieved using an NEC7720 signal processing chip and an 8085 microcomputer for transmission over an RS-423 digital interface.