In this paper we present the observations performed by the BeppoSAX Gamma-Ray Burst Monitor (GRBM) and Wide Field Cameras (WFC) of GB960720. We derive a precise localization (3 arcmin radius) and fast broad band (2-700 keV) spectral evolution of the event. A search in the catalogues at all wavelengths in the error box yields a unique outstanding source: the bright radio quasar 4C 49.29. Although the probability of finding such a source by chance is very low (0.0002), the absence of similar counterparts in other small error boxes suggests a chance occurrence. We also find that the duration-energy relationship for bursts previously observed above 25keV (Fenimore et al. 1995) extends down to 1.5 keV. This result suggests that the same radiation mechanism is operating from X-rays to gamma-rays and is in agreement with radiative cooling by synchotron emission. A fast evolution of the spectrum is found, in which the ratio of X- to gamma-ray intensities varies over three orders of magnitude. Furthermore, the spectrum in the initial phase of the event betrays the presence of an optically thick source rapidly evolving in a thin configuration.No other class of sources in the universe shows such a fast and extreme evolution. These results pose new and tighter constraints on theoretical models for gamma-ray bursts.
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