Entangled states are central to quantum information processing, including q
uantum teleportation(1), efficient quantum computation(2) and quantum crypt
ography(3). In general, these applications work best with pure, maximally e
ntangled quantum states. However, owing to dissipation and decoherence, pra
ctically available states are likely to be non-maximally entangled, partial
ly mixed (that is, not pure), or both. To counter this problem, various sch
emes of entanglement distillation, state purification and concentration hav
e been proposed(4-11). Here we demonstrate experimentally the distillation
of maximally entangled states from non-maximally entangled inputs. Using pa
rtial polarizers, we perform a filtering process to maximize the entangleme
nt of pure polarization-entangled photon pairs generated by spontaneous par
ametric down-conversion(12,13).(.) We have also applied our methods to init
ial states that are partially mixed. After filtering, the distilled states
demonstrate certain non-local correlations, as evidenced by their violation
of a form of Bell's inequality(14,15). Because the initial states do not h
ave this property, they can be said to possess 'hidden' non-locality(6,16).