  GRB 970508 is the second gamma-ray burst (GRB) for which an optical afterglow
has been detected. It is the first GRB for which a distance scale has been
determined: absorption and emission features in spectra of the optical
afterglow place GRB 970508 at a redshift of z >= 0.835 (Metzger et al. 1997a,
1997b). The lack of a Lyman-alpha forest in these spectra further constrains
this redshift to be less than approximately 2.3. I show that the spectrum of
the optical afterglow of GRB 970508, once corrected for Galactic absorption, is
inconsistent with the relativistic blast-wave model unless a second, redshifted
source of extinction is introduced. This second source of extinction may be the
yet unobserved host galaxy. I determine its redshift to be z =
1.09^{+0.14}_{-0.41}, which is consistent with the observed redshift of z =
0.835. Redshifts greater than z = 1.40 are ruled out at the 3 sigma confidence
level.
