We present spectroscopic and extensive photometric observations of supernov
a (SN) 1998de in the S0 galaxy NGC 252, discovered during the course of the
Lick Observatory Supernova Search. These data, which span a time period of
8 days before to 76 days after B-band maximum, unambiguously establish SN
1998de as a peculiar and subluminous Type Ia supernova (SN Ia) with strong
similarities to SN 1991bg, the prototype of these intrinsically dim SNe Ia.
We find that SN 1998de, which has Deltam(15)(B) = 1.95 +/- 0.09 mag, rises
and declines much faster than normal SNe Ia and does not exhibit the usual
plateau in the R band. In the I band it shows a short plateau phase or pos
sibly a secondary maximum, soon after the first maximum. We find that sublu
minous SNe Ia with the same value of Deltam(15)(B) can have slightly differ
ent light curves at longer wavelengths. The notable spectroscopic similarit
ies between SN 1998de and SN 1991bg are the wide Ti II trough at 4100-4500
Angstrom, the strong Ca II features, and the early onset of the nebular pha
se. We observe that spectroscopic deviations of SN 1998de from SN 1991bg in
crease toward redder wavelengths. These deviations include the absence of t
he conspicuous Na I D absorption found in SN 1991bg at 5700 Angstrom and th
e evolution of a region (6800-7600 Angstrom) from featureless to feature-ri
ch. Several lines of evidence suggest that SN 1998de was a slightly more po
werful explosion than SN 1991bg. We discuss the implications of our observa
tions for progenitor models and the explosion mechanism of peculiar, sublum
inous SNe Ia. The extensive photometric data make SN 1998de a better templa
te than SN 1991bg for calibrating the low-luminosity end of the luminosity
versus decline rate relationship.