It is shown that if a mixed state can be distilled to the singlet form it must violate partial transposition criterion [A. Peres, Phys. Rev. Lett. 76, 1413 (1996)]. It implies that there are two qualitatively different types of entanglement: ``free'' entanglement which is distillable, and ``bound'' entanglement which cannot be brought to the singlet form useful for quantum communication purposes. A possible physical meaning of the result is discussed.