We analyze Suzaku and XMM-Newton data of the highly variable Seyfert 2 , IRAS 18325-5926 . The spectra of the source are well modeled as a primary component described as an absorbed power law and a secondary power law component which is consistent with being scattered emission from an on-axis extended highly ionized medium . We show that while the primary component varies on a wide range of timescales from 10 ^ { 4 } -10 ^ { 8 } s , the scattered emission is variable only on timescales longer than 10 ^ { 5 } s. This implies that the extent of the scattering medium is greater than 10 ^ { 16 } cm . The ratio of the scattered to primary flux ( \sim 0.03 ) implies a column density for the scattering medium to be \sim 10 ^ { 23 } cm ^ { -2 } . We argue that for such a medium to be highly ionized it must be located less than 10 ^ { 17 } cm from the X-ray source . Thus we localize the position and extent of scattering region to be \sim a few \times 10 ^ { 16 } cm , with an average particle density of \sim 10 ^ { 6 } cm ^ { -3 } . We consider the physical interpretation of these results and as an aside , we confirm the presence of a broad Iron line emission in both the XMM-Newton and Suzaku observations .