  GRB 040223 was observed by INTEGRAL and XMM-Newton. GRB 040223 has a peak
flux of (1.6+/-0.13) x10^-8 ergs cm^-2 s^-1, a fluence of (4.4+/-0.4)x10^-7
ergs cm^-2 and a steep photon power law index of -2.3+/-0.2, in the energy
range 20-200 keV. The steep spectrum implies it is an x- ray rich GRB with
emission up to 200 keV and E_peak < 20 keV. If E_peak is < 10 keV, it would
qualify as an x-ray flash with high energy emission. The x-ray data has a
spectral index beta_x = -1.7+/-0.2, a temporal decay of t^(-0.75+/-0.25) and a
large column density of (1.8 x 10^22) cm^-2. The luminosity-lag relationship
was used to obtain a redshift (z = 0.1+0.04-0.02). The isotropic energy
radiated in gamma-rays and x-ray luminosity after 10 hours are factors of 1000
and 100 less than classical GRBs. GRB 040223 is consistent with the
extrapolation of the Amati relation into the region that includes XRF 030723
and XRF 020903.
