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This paper addresses the problem of extracting a desired speech source from a multispeaker environment in the presence of background noise. A new adaptive beamforming structure is proposed for this speech enhancement problem. This structure incorporates power spectral density (PSD) estimation of the speech sources together with a noise statistics update. An inactive-source detector based on minimum statistics is developed to detect the speech presence and to track the noise statistics. Performance of the proposed beamformer is investigated and compared to the minimum variance distortionless response (MVDR) beamformer with or without a postfilter in a real hands-free communication environment. Evaluations show that the proposed beamformer offers good interference and noise suppression levels while maintaining low distortion of the desired source.