The analytical solution of the problem of two two-level atoms with degenerate two-photon transitions interacting with a single-mode radiation field in the presence of a parametric amplifier term is presented. The purity of the atomic state has been used to measure the degree of entanglement between the atom and the field. The temporal evolution of variance and entropy squeezing as well as atomic inversion for the single-atom case are studied. It has been shown that maximum squeezing for the variance and entropy squeezing occurs when the ratio between the amplifier coupling ${\lambda }_3$ and the field frequency ω equals 0.26. Increasing the value of the ratio ${\lambda }_3∕\omega$ further leads to the vanishing of squeezing from the system. It is also noted that the existence of the coupling parameter results in the system never reaching the pure state except at the points of revival times. The Q function has been also considered to give more information in the phase space about the system. These aspects are sensitive to changes in the amplifier parameter.