A model of the broad-band continuum of NGC 5548

We discuss a model of the central source in Seyfert 1 galaxy NGC 5548. The model assumes a three phase disk structure consisting of a cold outer disk, a hot central disk constituting a Comptonizing X/gamma source, and an intermediate unstable and complex phase emitting a soft excess component. The model qualitatively explains broad-band spectrum and variability behavior assuming that the soft excess contributes significantly to the continuum emission and drives variability by geometrical changes of the intermediate disk zone.