We present XMM-Newton observations of Mrk 359, the first Narrow Line Seyfert 1 galaxy discovered. Even among NLS1s, Mrk 359 is an extreme case with extraordinarily narrow optical emission lines. The XMM-Newton data show that Mrk 359 has a significant soft X-ray excess which displays only weak absorption and emission features. The (2-10) keV continuum, including reflection, is flatter than the typical NLS1, with Gamma approximately 1.84. A strong emission line of equivalent width approximately 200 eV is also observed, centred near 6.4 keV. We fit this emission with two line components of approximately equal strength: a broad iron-line from an accretion disc and a narrow, unresolved core. The unresolved line core has an equivalent width of approximately 120 eV and is consistent with fluorescence from neutral iron in distant reprocessing gas, possibly in the form of a `molecular torus. Comparison of the narrow-line strengths in Mrk 359 and other low-moderate luminosity Seyfert 1 galaxies with those in QSOs suggests that the solid angle subtended by the distant reprocessing gas decreases with increasing AGN luminosity.
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