ARTRA GROUP Incorporated Reports Improved Third Quarter Results.

NORTHFIELD, Ill.--(BUSINESS WIRE)--Nov. 2, 1998--ARTRA GROUP Incorporated (NYSE:ATA) today reported a net loss of $189,000 (or $.04 per share) for the third quarter ended September 30, 1998 compared to a net loss of $2,229,000 (or $.31 per share) a year earlier.

ARTRA's third quarter 1998 operating earnings - before interest, other income (expense), net, income taxes and minority interest - were $1,616,000, an increase of 146% compared to $657,000 a year earlier.

ARTRA's net sales in the 1998 third quarter were $31,452,000 compared to $32,325,000 a year earlier.

Note: Accompanying this report are comparable financial statistics for ARTRA's 1998 and 1997 third quarter and nine-month periods.

ARTRA, as of August 26, 1998, entered into an agreement to sell its wholly-owned Bagcraft Corporation of America subsidiary to a new unit of IVEX Packaging Corporation (NYSE:IXX) for an amended total of $89 million. ARTRA will use a portion of the proceeds from the sale to retire Bagcraft senior debt and certain liabilities.

Due to changing market conditions, ARTRA's Board of Directors agreed, as of October 26, 1998, to amend the Assets Purchase Agreement relating to the buyer restructuring its capitalization.

Consummation of the transaction is subject to certain conditions, including the approval of ARTRA's shareholders at its Annual Meeting to be held on November 16, 1998, regulatory approval and the buyer obtaining satisfactory financing.

Regarding its soon-to-be liquid assets, ARTRA is currently reviewing several acquisition candidates. The ideal acquisition will be a company with significant growth potential and an above-average intrinsic appeal to the investment community.

Bagcraft is a producer of sandwich wraps, window bags, microwave popcorn bags and waxed bags with manufacturing facilities in Chicago, Illinois and Baxter Springs, Kansas.

ARTRA also owns approximately 10% of the common shares of COMFORCE Corporation (ASE:CFS), a leader in professional staffing and consulting to high-tech industries, with current annualized revenues of approximately $475 million.

Statements contained in this press release which are not historical facts are forward-looking statements. Such forward-looking statements are necessary estimates reflecting the best judgment of the party making such statements based upon current information and involve a number of risks and uncertainties. Forward-looking statements contained in this press release or in other public statements of the parties should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.

              ARTRA GROUP INCORPORATED AND SUBSIDIARIES
                        SUMMARY FINANCIAL DATA
                 (In thousands except per share data)


                           THREE MONTHS ENDED       NINE MONTHS ENDED
                        -----------------------   --------------------
                         Sept. 30,   Sept. 25,   Sept. 30,   Sept. 25,
                           1998        1997        1998        1997
                        -----------------------   --------------------
                                (Unaudited)            (Unaudited)

Summary results of
 operations:
Net sales                $ 31,452    $ 32,325    $ 94,717    $ 92,599
                         ========    ========    ========    ========

Operating earnings(a)    $  1,616    $    657    $  3,542    $  2,634
                         ========    ========    ========    ========

Loss before income taxes
 and minority
  interest (b)          ($    76)    ($ 2,371)   ($ 1,815)   ($ 5,455)
(Provision) credit for
 income taxes                  (2)        194         (46)        153
Minority interest            (111)        (52)       (411)       (769)
                         --------    --------    --------    --------
Net loss                     (189)     (2,229)     (2,272)     (6,071)
Dividends applicable
  to redeemable preferred
   stock                      (95)       (178)       (314)       (514)
Reduction of retained
  earnings applicable
   to redeemable
   common stock                --        (102)       --          (298)
                         --------    --------    --------    --------
Loss applicable to
 common shares           ($   284)   ($ 2,509)   ($ 2,586)   ($ 6,883)
                         ========    ========    ========    ========

Loss per share
   Basic                 ($  0.04)   ($  0.31)   ($  0.33)   ($  0.87)
                         ========    ========    ========    ========

   Diluted               ($  0.04)   ($  0.31)   ($  0.33)   ($  0.87)
                         ========    ========    ========    ========

Weighted average shares and
 equivalents outstanding
   Basic                    7,864       7,921       7,899       7,882
                         ========    ========    ========    ========

   Diluted                  7,864       7,921       7,899       7,882
                         ========    ========    ========    ========



                        Sept. 30,   Sept. 25,
                           1998        1997
                        ---------------------
                             (Unaudited)
Summary balance
sheet data:

Working capital
(deficiency)              ($4,476)   ($17,853)
                         ========    ========

Total assets              $63,901     $72,028
                         ========    ========

Long-term debt            $44,409     $39,937
                         ========    ========

Shareholders'
 equity (deficit)        ($31,062)   ($45,507)
                         ========    ========

NOTES TO SUMMARY FINANCIAL DATA -------------------------------

(a) Earnings (loss) before interest, other income (expense), net,

income taxes and minority interest.

(b) Includes realized gains from disposal of COMFORCE common stock of

$320,000 for the nine months ended September 30, 1998 and

$115,000 and $370,000 for the three months and nine months ended

September 25, 1997, respectively.