ARTRA GROUP INCORPORATED

                 SUPPLEMENT TO PROSPECTUS DATED OCTOBER 23, 1997
                    AND SUPPLEMENTS DATED FEBRUARY 19, 1999,
                         MARCH 9, 1999 AND JUNE 10, 1999

         The purpose of this Supplement is to provide the holders of outstanding
warrants  to purchase  common  stock of Artra Group  Incorporated  with  Artra's
understanding of certain  registration  provisions involving the exercise of the
warrants.  As you were previously  advised,  Artra has entered into an Agreement
and Plan of Merger  providing  for the merger of Artra and  Entrade,  Inc.  As a
result of the  merger,  Entrade  will  become  the  parent  company of Artra and
Artra's shareholders will receive shares of Entrade common stock in exchange for
their Artra shares.

         Artra is currently soliciting shareholder approval of the merger at its
1999 annual meeting, which has been scheduled for September 22, 1999. Management
anticipates that, if the merger is approved, the closing of the merger will take
place as soon as practicable thereafter,  although we cannot assure you that the
shareholders  will approve the merger or that other  closing  conditions  to the
merger will be satisfied.

         Under  the terms of the  merger  agreement,  Entrade  will  assume  all
outstanding  warrants,  options and other such rights to purchase  Artra  common
stock,  which will become  rights to  purchase  Entrade  common  stock after the
merger.  Unless  Entrade  registers the shares of Entrade  common stock issuable
upon exercise of the warrants,  any post-merger  exercise of your warrants would
result in your acquisition of restricted shares of Entrade common stock that you
will not be able to resell  publicly until such time as Entrade  registers those
shares under the  Securities  Act of 1933 or at least one year has elapsed after
the exercise  date to enable the shares to be sold under the Rule 144  exemption
from registration.

         Although we  understand  that  Entrade  intends to file a  registration
statement  relating to the post-merger  exercise of your warrants,  no assurance
can be given that the  registration  will occur  immediately upon the closing of
the merger, if at all. Therefore, if you exercise your warrants after the merger
occurs but before any Entrade registration statement becomes effective, there is
a risk that you will not be able to resell the  shares  acquired  upon  exercise
until the one-year holding period of Rule 144 has elapsed.

         If you exercise your  warrants  before of the merger  occurs,  you will
receive shares of Artra common stock that have been  registered and that will be
converted  upon the  closing of the  merger  into  registered  shares of Entrade
common stock. Please be advised, however, that any resale of these shares by you
would be subject to all other  securities  laws and  regulations  governing such
sale.

         The  warrants  have  exercise  prices  ranging  from $3.00 to $8.00 per
share.  The average of the high and low sales  prices of Artra  common  stock on
August 27, 1999 was $13.62 per share.

         This letter is  intended  for  information  purposes  only,  and is not
intended to solicit or  encourage  you to  exercise  your  warrants.  You should
consult with your personal legal and financial advisors prior to considering any
such action.

                    This Supplement is dated August 30, 1999.