Core-shell latexes (LAs) designed for crosslinking with cycloaliphatic diepoxide were synthesized. The core contained methyl methacrylate (MMA), butyl acrylate (BA), and 2-hydroxyethyl methacrylate, and the shell was prepared with MMA, BA, and methacrylic acid. The crosslinker was coemulsified with the monomer and added during the LA preparation or after the polymerization either as an emulsion or in an organic solvent. The morphology of the LA was studied with atomic force microscopy and transmission electron microscopy. We used titration to establish the acid distribution. The water absorption and tensile and viscoelastic properties of the LA films were investigated as a function of the addition mode of the cycloaliphatic diepoxide crosslinker. The solution approach generally provided better mechanical properties than the emulsion approach, and the addition of epoxide during the polymerization lowered the water adsorption and hardness. (C) 2003 Wiley Periodicals, Inc.