Abstract: A circuit arrangement to enable one party to have a two-way conversation simultaneously with an outside party and an internal party. The circuit arrangement includes circuitry so that the outside party cannot hear anything that is said by the internal party or vice versa. Thus, the one party has the ability to talk to both the outside and the internal party without them hearing each other while using one subset and not putting anyone on hold. The circuitry is also provided with a designated button, which when depressed places all three parties in a two-way conference. In addition, the circuitry includes a resistance network coupled between the transmitter and receiver of the one subset both in the outside circuit and the internal circuit associated therewith to reduce sidetones in the receiver of the one subset.