Long-lived emission, known as afterglow, has now been detected from about a
dozen gamma-ray bursts. Distance determinations place the bursts at cosmol
ogical distances, with redshifts,z, ranging from similar to 1 to 3, The ene
rgy required to produce these bright gamma-ray flashes is enormous: up to s
imilar to 10(53) erg, or to per cent of the rest-mass energy of a neutron s
tar, if the emission is isotropic. Here we present optical and near-infrare
d observations of the afterglow of GRB990123, and we determine a redshift o
f z greater than or equal to 1.6, This is to date the brightest gamma-ray b
urst with a well-localized position and if the gamma-rays were emitted isot
ropically, the energy release exceeds the rest-mass energy of a neutron st
ar, so challenging current theoretical models of the sources. We argue, how
ever, that our data may provide evidence of beamed (rather than isotropic)
radiation, thereby reducing the total energy released to a lever where stel
lar-death models are still tenable.