We propose a physical model of gamma-ray burst spectral evolution in w
hich impulsively accelerated nonthermal leptons cool by saturated Comp
ton upscattering of soft photons. This model naturally explains the re
cently discovered exponential decay of the spectral break energy with
photon fluence, the hard-to-soft spectral evolution patterns, and othe
r spectral and temporal properties of gamma-ray bursts.