The notion of ''hidden'' entanglement is introduced, and it is shown t
hat this is a property associated with every separable mixed quantum s
tate of two subsystems. The hidden entanglement is explicitly quantifi
ed for a general class of separable mixed states of two spin-1/2 parti
cles, and a formula is derived giving the maximum amount of entangleme
nt that can be hidden. The process of ''unlocking'' hidden entanglemen
t with classical information is explained, and the number of bits requ
ired to unlock each ebit of entanglement is evaluated. It is argued th
at the entanglement-unlocking process can be seen as the converse of q
uantum cryptography schemes that use EPR pairs.