A novel telecommunication system, termed Virtual Antenna Arrays, was recently presented that allows the application of Multiple-Input-Multiple-Output (MIMO) capacity enhancement techniques to mobile terminals with a limited number of antenna elements [1]. This paper introduces a novel approach extending the possible applicability of recently emerged Space-Time Block Codes (STBC) to such Virtual Antenna Arrays. The main idea is to emulate the (2 transmit antennas, 2 receive antennas) diversity

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... heme developed by Alamouti [2]. This approach successfully deals with the problem of just one receiving antenna in a handset. Simulations results indicate an improvement in error performance over the simple (2,1) Alamouti scheme.