They did this by using two microphones, using one of the microphones for the singer, the other for the background noise. By inverting the phase on one of the microphones and then summing these two signals they filtered out the background noise. At least this was my understanding.
Sometimes it's really great how far we have come with technology and what tricks they've used in the past.
@good sound guy: you're absolutely right - but most of the good and / or big bands have their sound guy anyways.