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In radio and signal processing, heterodyning is the generation of new frequencies by mixing, or multiplying, two oscillating waveforms. It is useful for modulation and demodulation of signals, or placing information of interest into a useful frequency range. This operation may be accomplished by a vacuum tube, transistor, or other signal processing device. Mixing two frequencies creates two new frequencies, according to the properties of the sine function: one at the sum of the two frequencies mixed, and the other at their difference. Typically only one of these frequencies is desired—the higher one after modulation and the lower one after demodulation. The other signal is either not passed by the tuned circuitry that follows, or may be filtered out.
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http://en.wikipedia.org/wiki/Cocktail_party_effect