We present a scheme to prepare generalized coherent states in a system with two species of Bose-Einstein condensates. First, within the two-mode approximation, we demonstrate that a Schrodinger cat-like state can be dynamically generated and, by controlling the Josephson-like coupling strength, the number of coherent states in the superposition can be varied. Later, we analyze numerically the dynamics of the whole system when interspecies collisions are inhibited. Variables such as fractional population, Mandel parameter and variances of annihilation and number operators are used to show that the evolved state is entangled and exhibits sub-Poisson statistics. (c) 2005 Elsevier Inc. All rights reserved.321512061220