We report the first detection of a sharp spectral feature in a Narrow-Line Seyfert 1 galaxy. Using XMM-Newton we have observed 1H0707-495 and find a drop in flux by a factor of more than 2 at a rest-frame energy of ~7 keV without any detectable narrow Fe K alpha line emission. The energy of this feature suggests a connection with the neutral iron K photoelectric edge, but the lack of any obvious absorption in the spectrum at lower energies makes the interpretation challenging. We explore two alternative explanations for this unusual spectral feature: (i) partial covering absorption by clouds of neutral material and (ii) ionised disc reflection with lines and edges from different ionisation stages of iron blurred together by relativistic effects. We note that both models require an iron overabundance to explain the depth of the feature. The X-ray light curve shows strong and rapid variability, changing by a factor of four during the observation. The source displays modest spectral variability which is uncorrelated with flux.
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