Abstract: An acoustic echo canceler and a side-tone echo canceler provided in a hands-free telephone suppress an acoustic echo and a side-tone echo respectively with few error by providing automatic gain controllers and/or limiters in the hands-free telephone so that the acoustic echo canceler and the side-tone echo canceler operate in linear, and a directional characteristic of a microphone used in the hands-free telephone for reducing the acoustic echo is controlled by a microphone direction controller so that the microphone operates as an omnidirectional microphone when a level of a received signal of the hands-free telephone is less than a designated level and as a bidirectional microphone when the level exceeds the designated level, further gains of an output of the microphone increases in a low frequency range.