The invention relates to epoxy adhesives. An epoxy adhesive is provided that simultaneously has low E-modulus and high glass temperature. Such adhesives are useful in the manufacture of large machinery (e.g., automobiles), and are useful for bonding different materials, such as metal and carbon fiber composite. The cured epoxy adhesive can be formulated to have an E-modulus of less than 1000 MPa, and a glass transition temperature of at least 80 C. The epoxy adhesive comprises a capped polyurethane pre polymer, a core shell rubber, and polyetheramine-epoxy adduct.