Abstract: A communication system is adapted to particularly operate in the AM (amplitude modulated) broadcast band and accommodates stereo transmission via a left and a right channel. The system includes a transmitter which provides an upper and lower sideband; each containing unique audio information definitive of a right and left channel and generated by means of a common carrier frequency. A receiver is adapted to separate the side bands and to process the same to obtain two independent audio signals indicative of an AM stereo transmission. The system as described is compatible with present day AM receiver broadcasting techniques.