  The BL Lac object 0716+714 is a powerful flat spectrum radio source detected
by CGRO-EGRET at $\gamma$-ray energies. It has been observed for about 21000 s
over two days by the X-ray telescope onboard the ROSAT satellite and strong
flux and spectral variations have been detected. In the time scale of two days
the source varied by a factor of $\sim 7$; during a sudden ($\sim 1000$ s) flux
increase, the variation was 70\%. 0716+714 exhibits spectral variations related
to source flux variability which may be attributed to a ``soft excess"
component most prominent when the source was in a low state. The spectrum of
0716+714 steepened in the soft X-ray band when the flux decreased while in the
hard X-ray band remained constant. A double power law model, representing steep
synchrotron radiation at low energies and flat inverse Compton radiation above
$\sim$ 1 keV, best fits both the low and high state.
