We present photoionization models of the high excitation gas in the Extended Narrow Line Region (ENLR) of NGC1068. The ENLR line fluxes have been calculated allowing for attenuation of the central-source ionizing continuum as a function of distance from the centre. Diffuse continuum emission from low density ENLR gas is included as an important secondary source of ionization. The observed high excitation emission further than 25 arcsec from the centre of NGC1068 can be fitted by photoionization models using a central-source luminosity of 3.6x10^44 erg/s between 10^14.6 and 10^18.4 Hz, with the continuum shape attenuated by nuclear gas with an integrated column density of N_h=10^22 cm^-2. The reflected soft X-ray continuum from the attenuating gas could be responsible for about 10% of the observed, resolved circumnuclear soft X-ray continuum extending out to 15 arcsec from the centre (Wilson et al 1992).
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