  We report on the generation of a continuous variable Einstein-Podolsky-Rosen
(EPR) entanglement using an optical fibre interferometer. The Kerr nonlinearity
in the fibre is exploited for the generation of two independent squeezed beams.
These interfere at a beam splitter and EPR entanglement is obtained between the
output beams. The correlation of the amplitude (phase) quadratures are measured
to be 4.0+-0.2 (4.0+-0.4) dB below the quantum noise limit. The sum criterion
for these squeezing variances 0.80+-0.03 < 2 verifies the nonseparability of
the state. The product of the inferred uncertainties for one beam 0.64+-0.08 is
well below the EPR limit of unity.
