Myoelectric pattern recognition (PR) can provide a more intuitive control for upper limb amputees in using multifunction prosthesis than direct control. Accuracy of a pattern recognition system has been shown to improve with increasing number of EMG channels. However, increasing the number of channels comes with a drawback of increased weight, cost and complexity of the prosthesis. This paper presents the concept and design of a novel EMG acquisition system to acquire higher number of channels without increasing the number of electrodes placed or the complexity of the prosthetic device. A prototype of the device was developed and tested on able-bodied subjects to evaluate its performance in pattern recognition. Subjects were requested to perform 9 different hand movements while EMG data was collected into training and test groups. Test results indicate a 15% improvement in classification accuracy with the new system when compared to conventional systems. A system like this is valuable for patients with higher level amputations where placing higher number of electrodes is not feasible due to limited availability of appropriate muscle sites.