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Electronic Nose (e-nose) is an intelligent instrument that is able to classify different types of odours. The e-nose applications include food quality assurance, fragrance industry, medical diagnosis, environmental monitoring, agricultural industry and homeland security. The current e-nose design trend are portable, small size, low power consumption, high processing power using embedded controller and easy to operate to enable it to perform the designed tasks effectively. This paper deals with the design issues of a hand-held e-nose based on sensor selection and optimum embedded controller capabilities. A summary of proposed hardware and software solutions are provided with emphasis on data processing. The data processing utilizes multivariate statistical analysis i.e. Principal Component Analysis (PCA), Hierarchical Cluster Analysis (HCA) and Linear Discriminate Analysis (LDA). The developed instrument was tested to discriminate the Ganoderma boninense fruiting body (basidiocarp). Initial results show that the instrument is able to discriminate the samples based on their odour chemical fingerprint profile.