  We examine the properties of an atom laser produced by outcoupling from a
Bose-Einstein condensate with squeezed light. We model the multimode dynamics
of the output field and show that a significant amount of squeezing can be
transfered from an optical mode to a propagating atom laser beam. We use this
to demonstrate that two-mode squeezing can be used to produce twin atom laser
beams with continuous variable entanglement in amplitude and phase.
