Furby had a few friends produced which could interact in a similar way to Furby as well as with each other. E.T. was one of these.
E.T. measured 9" high and came with a removable red top.
"E.T. invites everyone to share the thrill of his magic touch. It's more than a movie - it's an experience you'll never forget. Just like the real E.T., this figure's heart and finger really glow. E.T. has a vocabulary of over 400 words! He has animated eyes and mouth, telescoping neck, and poseable arms! He can communicate with Furby, Furby Babies, Gizmo, Shelby and another E.T. Teach E.T. how to speak, behave and play!"
The patents and technical data is here: https://patents.google.com/patent/US6544094B1/en.