In this Letter we describe a new two-mode system, which consists of Kerr-like medium and down conversion process, called the Kerr-down conversion system. Under a certain condition we can obtain an exact solution of the dynamical equations of motion. For this system we investigate different kinds of quadrature squeezing, e.g., single-mode, two-mode and sum-squeezing. Also we give a more general definition of the principal squeezing. We show that the amounts of nonclassical effects produced by the Kerr-like and down-conversion processes separately are greater than those obtained from the Kerr-down conversion system where both the processes are in competition.
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