Gamma-ray bursts are believed to originate from internal shocks that arise
in an irregular relativistic wind. The process has been thought to be ineff
icient, converting only a few percent of the kinetic energy into gamma rays
. We define ultraefficient internal shocks as those in which the fraction o
f emitted energy is larger than the fraction of energy given to the radiati
ng electrons at each collision. We show that such a scenario is possible an
d even plausible. In our model, colliding shells that do not emit all their
internal energy are reflected from each other, causing subsequent collisio
ns and thereby allowing more energy to be emitted. As an example, we obtain
about 60% overall efficiency even if the fraction of energy that goes to e
lectrons is epsilon (e) = 0.1, provided that the shells' Lorentz factor var
ies between 10 and 10(4). The numerical temporal profile reflects well the
activity of the source that ejects the shells, though numerous collisions t
ake place in this model.