[en] A model for the origin of relativistic particles and gamma rays in active galactic nuclei and quasars, together with recent HEAO-1 observations of the spectra of active galaxies from 2 to 165 keV, provide the basis for a reexamination of the nature of the extragalactic gamma ray background. Active galaxies account for the observed background if their X-ray spectra steepen to E.021 above 100 keV, as observed in Cen-A, together with a further steepening to E.021 as a result of absorption of gamma rays by photon-photon pair production interactions with X-ray photons. The compactness of active galaxies required to give this steepening is consistent with estimates of their typical luminosity and radius