In　this　paper　a　compressive　sampling　method　of　MLT　coefficients　which　is　used　for　extracting　stereo　information　is　adopted　based　on　principal　component　analysis　(PCA)　and　Modulated　Lapped　Transform　(MLT).　With　this　method,　an　embedded　variable　bit-rates　stereo　speech　and　audio　coding　algorithm　is　proposed　in　this　paper.　In　this　codec,　the　stereo　signal　sampled　at　32　kHz　and　16　kHz　can　be　coded　in　terms　of　scalable　bit　rates,　the　structure　of　bit-stream　is　embedded　and　the　bit-stream　can　be　divided　into　several　layers.　The　core　codec　is　ITU-T　G.729.1　which　can　process　mono　signal　with　7　kHz　bandwidth.　Besides　there　are　four　extra　bit-rates　added　include　40,　48,　56,　and　64kb/s.　The　maximum　bit-rates　of　wide　band　stereo　signal　and　super-wideband　stereo　signal　are　48kb/s　and　64kb/s,　respectively.　The　objective　and　subjective　test　results　show　that　the　quality　of　the　proposed　codec　is　no　worse　than　the　reference　codec　which　is　requested　by　ITU-T