  We present the first results from a detailed analysis of a new, long
($\sim100$ ks) XMM-Newton observation of the narrow-line Seyfert 1 galaxy PG
1404$+$226 which showed a large-amplitude, rapid X-ray variability by a factor
of $\sim7$ in $\sim10$ ks with an exponential rise and a sharp fall in the
count rate. We investigate the origin of the soft X-ray excess emission and
rapid X-ray variability in the source through time-resolved spectroscopy and
fractional root-mean-squared (rms) spectral modeling. The strong soft X-ray
excess below 1 keV observed both in the time-averaged and time-resolved spectra
is described by the intrinsic disk Comptonization model as well as the
relativistic reflection model where the emission is intensive merely in the
inner regions ($r_{\rm in}<1.7 r_{\rm g}$) of an ionized accretion disk. We
detected no significant UV variability while the soft X-ray excess flux varies
together with the primary power-law emission (as $F_{{\rm primary}}\propto
F_{{\rm excess}}^{1.54}$), although with a smaller amplitude, as expected in
the reflection scenario. The observed X-ray fractional rms spectrum is
approximately constant with a drop at $\sim0.6$ keV and is described by a
non-variable emission line component with the observed energy of $\sim0.6$ keV
and two variable spectral components: a more variable primary power-law
emission and a less variable soft excess emission. Our results suggest the
`lamppost geometry' for the primary X-ray emitting hot corona which illuminates
the innermost accretion disk due to strong gravity and gives rise to the soft
X-ray excess emission.
