We propose and implement a new scheme of generating the optical Einstein-Podolsky-Rosen entangled state. Parametric down-conversion in two nonlinear crystals, positioned back-to-back in the waist of a pump beam, produces single-mode squeezed vacuum states in orthogonal polarization modes; a subsequent beam splitting entangles them and generates the Einstein-Podolsky-Rosen state. The technique takes advantage of the strong nonlinearity associated with type-0 phase-matching configuration while, at the same time, eliminating the need for actively stabilizing the optical phase between the two single-mode squeezers. We demonstrate our method, preparing a 1.4 dB two-mode squeezed state and characterizing it via two-mode homodyne tomography
