An input signal is time-frequency transformed, then the frequency-domain coefficients are divided into coefficient segments of about 100 Hz width to generate a sequence of coefficient segments, and the sequence of coefficient segments is split into subbands each consisting of plural coefficient segments. A threshold value is determined based on the intensity of each coefficient segment in each subband. The intensity of each coefficient segment is compared with the threshold value, and the coefficient segments are classified into low- and high-intensity groups. The coefficient segments are quantized for each group, or they are flattened respectively and then quantized through recombination.