We have constructed a two-star photometer that allows observations of a variable star and a nearby comparison star to be made simultaneously. The design of this photometer differs from most of the multichannel photometers described in the literature. During 1996-97 the photometer was employed in observations of the eclipsing binary Chi Dra as part of the TEP (Transits of Extrasolar Planets) network (Deeg et al. 1998). Despite the fact that the observations were obtained with a rather small (70 cm) telescope, mostly under unfavorable sky conditions due to the location of Kourovka Observatory in a damp fir forest, the precision for this photometer (5 mmag) turned out to be only slightly lower than the precision for the CCD systems (3-4 mmag) employed by other collaborators of the TEP network, The noise analysis made for the two-star photometer shows that a precision of about 2 mmag can be achieved under excellent photometric conditions and the employment of larger telescopes or in observations of brighter stars. The two-star photometer seems to be a promising instrument for searching for transits of extrasolar planets.