We observed the ASM error box of GRB 980703 with the BeppoSAX LECS (0.1-10 keV) and MECS (2-10 keV) on July 4.10-5.08 UT and July 7.78-8.71 UT. These data show a previously unknown X-ray source 1SAXJ2359.1+0835 at RA = 2359068, Dec = +083545 (equinox J2000.0), with an error radius of 50. The average spectrum can be modelled with a photon index and a host galaxy column density = 3.6+2.2-1.3 1022 cm-2, corresponding to = 20.2+12.3-7.3 (local to the absorber). Fitting a power law model to the light curve, we obtain for the decay index. We checked for the presence of the Fe line at 6.4 keV, but do not detect it. The upper limit on its flux is 8.3 10-6 photons cm-2 s-1 (90% confidence level).
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