The system utilizes a linear predictive coding (LPC) analyzer, an Attenuator, a line spectrum pair (LSP) analyzer, a reference pattern memory and a pattern matching device. The LPC analyzer derives LPC parameters from an input speech signal. The LPC parameters are attenuated in the attenuator and fed to the LSP analyzer for deriving LSP parameters which are in turn fed to the pattern matching device. The reference pattern memory stores a plurality of reference patterns composed of a sequence of LSP parameters for a variety of predetermined speech samples. The pattern matching device is connected to the LSP analyzer and the reference pattern memory to select the reference pattern which most closely resembles the input pattern from the LSP analyzer and to provide a label code as an output thereof. On the decoding side, a decoder is responsive to the label for generating LPC parameters corresponding to the reference pattern of the label. A residual signal which is also transmitted with the reference label is received and fed with the generated LPC parameters to a synthesis filter for providing a synthesized speech signal which is subsequently converted into an analog signal.