  A detailed analysis of a long XMM-Newton observation of the Narrow Line
Seyfert 1 galaxy 1H0707-495 is presented, including spectral fitting, spectral
variability and timing studies. The two main features in the spectrum are the
drop at ~ 7 keV and a complex excess below 1 keV. These are well described by
two broad, K and L, iron lines. Alternative models based on absorption,
although they may fit the high energy drop, cannot account for the 1 keV
complexity and the spectrum as a whole. Spectral variability shows that the
spectrum is composed of at least two components, which are interpreted as a
power-law dominating between 1-4 keV, and a reflection component outside this
range. The high count rate at the iron L energies has enabled us to measure a
significant soft lag of ~ 30 s between 0.3-1 and 1-4 keV, meaning that the
direct hard emission leads the reflected emissions. We interpret the lag as a
reverberation signal originating within a few gravitational radii of the black
hole.
