The dipole blockade between Rydberg atoms has been proposed as a basic tool in quantum information processing with neutral atoms. Here we demonstrate experimentally the Rydberg blockade of two individual atoms separated by 4 $mu$m. Moreover, we show that, in this regime, the single atom excitation is enhanced by a collective two-atom behavior associated with the excitation of an entangled state. This observation is a crucial step towards the deterministic manipulation of entanglement of two or more atoms using the Rydberg dipole interaction.