  We model the ~1-200 keV spectra of Cygnus X-3 observed by BeppoSAX. The
continuum, modeled by Comptonization in a hybrid plasma, is modified by the
strongly ionized plasma of the stellar wind of the Wolf-Rayet companion star.
Discrete absorption and emission spectral features are modeled with XSTAR. The
model has been applied to phase-resolved spectra in the hard and soft spectral
states.
