The SL5020 contains two variable gain circuits configured for compressing and expanding the dynamic range of an audio signal. One circuit is configured as an expander, while the other circuit can be configured as a compressor or expander. Each circuit has a full wave rectifier to provide average value information to a variable gain cell located in either the input stage or the feedback path. An internal temperature stable bandgap reference provides the necessary precision voltages and currents required. It contains also compressor and expander mute circuit.