Uh, yeah its overheating. LOL
More than likely the thermal paste was junk under the heatsink, or the heatsink may not be fastened down properly. I've seen some pretty crazy stuff from the manufacturers all in the name of saving pennies.
First thing I'd do is send it back and exchange it for another one. Just in case that heat has damaged anything. 98C is pretty hot. Video cards are usually built to handle pretty extreme temps but why risk it when you have a return policy?
Second thing I'd do is run the new card and watch the temps on it as well. If it has the same problem, then before it starts getting really bad take matters in your own hands and try to make the stock heatsink and fan do the job with new thermal paste and checking the fasteners for a good tight fit. You may even have to invest in a aftermarket cooler. I couldnt get my stock fan and heatsink to keep my 6800U cool so thats what I did. Thats up to you though if you want to lay out the extra cash.