A class of compensated parameter identifiers is utilized to generate bias-free parameter estimates in the presence of noise disturbance which accounts for the uncertainties in the system. A forward feedback is used to minimize the effect of noise. The observer form of state variable modelling is used to synthesize a ladder circuit whereby the compensated parameter identifiers are asymptotically stable, with rapid convergence. A new technique is applied to derive state feedback that assures the assignment of closed-loop eigenvalues in arbitrary sectors within the unit circle.