We report on the preparation of entangled two mode squeezed states of yet unseen quality. Based on a measurement of the covariance matrix we found a violation of the Reid and Drummond EPR-criterion at a value of only 0.36pm0.03 compared to the threshold of 1. Furthermore, quantum state tomography was used to extract a single photon Fock state solely based on homodyne detection, demonstrating the strong quantum features of this pair of laser-beams. The probability for a single photon in this ensemble measurement exceeded 2/3.