We report the first detection of a sharp spectral feature in a narrow-line Seyfert 1 galaxy. Using XMM-Newton we have observed 1H 0707 - 495 and find a drop in flux by a factor of more than 2 at a rest-frame energy of similar to 7 keV without any detectable narrow Fe Kalpha line emission. The energy of this feature suggests a connection with the neutral iron K photoelectric edge, but the lack of any obvious absorption in the spectrum at lower energies makes the interpretation challenging. We explore two alternative explanations for this unusual spectral feature: (i) partial-covering absorption by clouds of neutral material; and (ii) ionized disc reflection with lines and edges from different ionization stages of iron blurred together by rel...