  We present BeppoSAX follow-up observations of GRB980425 obtained with the
Narrow Field Instruments (NFI) in April, May, and November 1998. The first NFI
observation has detected within the 8' radius error box of the GRB an X-ray
source positionally consistent with the supernova 1998bw, which exploded within
a day of GRB980425, and a fainter X-ray source, not consistent with the
position of the supernova. The former source is detected in the following NFI
pointings and exhibits a decline of a factor of two in six months. If it is
associated with SN 1998bw, this is the first detection of X-ray emission from a
Type I supernova above 2 keV. The latter source exhibits only marginally
significant variability. The X-ray spectra and variability of the supernova are
compared with thermal and non-thermal models of supernova high energy emission.
Based on the BeppoSAX data, it is not possible to firmly establish which of the
two detected sources is the GRB X-ray counterpart, although probability
considerations favor the supernova.
