  We report XMM-Newton observations of the eclipsing binary Algol A (B8V) and B
(K2III). The XMM-Newton data cover the phase interval 0.35 - 0.58, i.e.,
specifically the time of optical secondary minimum, when the X-ray dark B-type
star occults a major fraction of the X-ray bright K-type star. During the
eclipse a flare was observed with complete light curve coverage. The decay part
of the flare can be well described with an exponential decay law allowing a
rectification of the light curve and a reconstruction of the flaring plasma
region. The flare occurred near the limb of Algol B at a height of about 0.1R
with plasma densities of a few times 10^11 cm^-3 consistent with spectroscopic
density estimates. No eclipse of the quiescent X-ray emission is observed
leading us to the conclusion that the overall coronal filling factor of Algol B
is small.
