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Is your engine an in-line 6 or a V/6 ??

This is the sensor for the V6 engine,
They started in the 1998 model. This sensor will not fit the 104 engine
[ in-line 6-1997 model]

http://catalog.eautopartscatalog.com/mercedesshop/sophio/wizard.jsp?partner=mercedesshop&clientid=catalog.mercedesshop&baseurl=http://catalog.peachparts.com/&cookieid=1W70PZW4N20510EN9K&year=1998&make=MB&model=E-320-005&category=A&part=Camshaft+Position+Sensor