Abstract: An intercom system for use with a plurality of telephones on a single extension includes a single master station and a plurality of slave stations. The master station is connected so as to interrupt the telephone line pair to and from a central exchange. Each slave station is preferably associated with a handset that is on the extension. When the extension is not being used for intercom service or for an outside call, any telephone handset on the extension that has a keypad can initiate a signal that is received and decoded in the master unit. When the master station receives such a signal, it disconnects the line to the telephone exchange from the extension and connects the telephone exchange to a circuit that detects incoming calls so that they can be signaled to users. The master station also sends a signal to each slave station that enables the intercom function.