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The design of compact diversity antenna for wireless handset applications has been presented. The results obtained demonstrate high potential of such a design for the handset antenna systems realizing various diversity techniques, such as switched diversity, maximal ratio combining and selection diversity. This antenna structure can also be utilized in a MIMO system, where the low mutual coupling between the antenna elements is required. It has been confirmed that the antenna radiation characteristics (radiation gain, directivity and total efficiency) satisfy the specification parameters being demanded for wireless handset applications.