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.
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