SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

(Mark One)

/x/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934
                 For the quarterly period ended April 30, 2006
                                       or

/ / TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
    ACT OF 1934
For the transition period from                      to
                               --------------------    --------------------

                       Commission File Number 33-19048-NY

                         MURRAY UNITED DEVELOPMENT CORP.
        -----------------------------------------------------------------
        (Exact Name of Small Business Issuer as specified in its charter)


                Delaware                                 22-2856171
----------------------------------------     -----------------------------------
   (State or other jurisdiction of          (I.R.S. employer identification no.)
    incorporation or organization)

P.O. Box 224, Landing, New Jersey                     07850
---------------------------------------            -----------
(Address of principal executive offices)            (Zip Code)


Registrant's telephone number, including area code     (908)  979-3025
                                                              --------

                                    No Change
--------------------------------------------------------------------------------
           (Former Name, Former Address, if changed since last report)

Indicate by check mark whether the Issuer:

(1) Has filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports):
Yes      x          No
    -----------        -----------

(2) Has been subject to such filing requirements for the past 90 days.

Yes      x          No
    -----------        -----------

173,253,434 shares of the registrant's Common Stock ,$.0001 per share, were
outstanding as of June 12, 2006.






<PAGE>


                      MURRAY UNITED DEVELOPMENT CORPORATION

                                TABLE OF CONTENTS
                                   FORM 10-QSB



                          PART I FINANCIAL INFORMATION


Item Number                                                                 Page

Item 1.             Financial Statements

                          Balance Sheets                                       2

                          Statements of Operations                             4

                          Statements of Stockholders' Deficiency               5

                          Statements of Cash Flow                              6

                          Notes to Financial Statements                        7

Item 2.             Management's Discussion and Analysis
                    Or Plan of Operation                                       9

Item 3.             Controls and Procedures                                   15



                    PART II OTHER INFORMATION

Item 1.             Legal Proceedings                                         15

Item 2.             Unregistered Sales of Equity Securities and
                    Use of Proceeds                                           15

Item 3.             Defaults Upon Senior Securities                           15

Item 4.             Submission of Matters to a Vote of Security
                    Holders                                                   16

Item 5.             Other Information                                         16

Item 6.             Exhibits                                                  16

Signatures                                                                    17
<PAGE>

                             PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                          MURRAY UNITED DEVELOPMENT CORPORATION
                          (A Company in the Development Stage)
                                     BALANCE SHEETS
                                       (UNAUDITED)
                                         ASSETS


<TABLE>
<CAPTION>
                                 April 30, 2006              July 31, 2005
                              ----------------------      ---------------------
<S>                          <C>                        <C>
Current assets
Cash & cash equivalents       $                 158       $                170
Loan Receivable                               2,000                      2,000
                              ----------------------      ---------------------

Total current assets          $               2,158       $              2,170
                              ----------------------      ---------------------

Total assets                  $               2,158       $              2,170
                              ======================      =====================

</TABLE>


The accompanying notes are an integral part of the financial statements.



                                        2


<PAGE>

                                         MURRAY UNITED DEVELOPMENT CORPORATION
                                          (A Company in the Development Stage)
                                                     BALANCE SHEETS
                                                      (UNAUDITED)
                                        LIABILITIES AND STOCKHOLDERS' DEFICIENCY

<TABLE>
<CAPTION>

                                                          April 30, 2006              July 31, 2005
                                                      -----------------------      --------------------
<S>                                                  <C>                       <C>
Current liabilities:
     Accounts payable and Accrued Expenses            $               32,335       $            13,818
                                                      -----------------------      --------------------

    Total current liabilities                                         32,335                    13,818

Other liabilities:
     Accrued Interest Payable                                         84,835                   143,024
     Notes payable-other stockholder                                 832,878                 1,944,754
     Accrued Compensation                                            148,128                   148,128
                                                      -----------------------      --------------------

    Total other liabilities                                        1,065,841                 2,235,906
                                                      -----------------------      --------------------

    Total liabilities                                              1,098,176                 2,249,724
                                                      -----------------------      --------------------


Stockholders' deficiency:

Common Stock, par value $.0001:
     Authorized 200,000,000 shares;
     issued and outstanding
173,253,434 shares and 84,153,434                                     17,326                     8,416
Additional paid-in capital                                         3,232,518                 2,572,028
Deficit accumulated in the development stage                      (4,345,862)               (4,827,998)
                                                      -----------------------      --------------------

     Total stockholders' deficiency                               (1,096,018)               (2,247,554)
                                                      -----------------------      --------------------

     Total Liabilities and Stockholder' Deficiency   $                2,158      $              2,170
                                                      =======================      ====================

</TABLE>

The accompanying notes are an integral part of the financial statements.

                                        3
<PAGE>

                                     MURRAY UNITED DEVELOPMENT CORPORATION
                                     (A Company in the development Stage)
                                           STATEMENTS OF OPERATIONS
                               FOR THE NINE MONTHS ENDED APRIL 30, 2006 AND 2005
<TABLE>
<CAPTION>
                                                                                                  CUMULATIVE
                                                                                                    AMOUNTS
                                                                                                      FROM
                                                2006                    2005                       INCEPTION
                                        -------------------     -------------------         --------------------
<S>                                     <C>                    <C>                          <C>
Income
Debt forgiveness                                   632,500                       -                      632,500
Interest income                                          -                       -                       66,465
                                        -------------------     -------------------         --------------------
Total Income                                             -                       -                      698,965

Expenses
Research and Development costs                                                                          876,771
Licensing fees-stockholder and affiliate                 -                       -                       57,260
General and administrative expenses                 65,529                  74,521                    3,085,807
Interest expense-stockholder and affiliate          84,835                 106,660                    1,024,991

                                        -------------------     -------------------         --------------------
Total Expenses                                     150,364                (181,181)                   5,044,829
                                        -------------------     -------------------         --------------------

Net Gain (Loss) before tax              $          482,136     $          (181,181)        $         (4,345,864)
                                        -------------------     -------------------         --------------------

Net Income (Loss)                       $          482,136     $          (181,181)        $         (4,345,864)
                                        ===================     ===================         ====================

Net loss per common share               $            0.004      $           (0.002)         $            (0.025)

Weighted average number of
common shares outstanding                      124,947,045              82,720,770                  173,253,454
                                        -------------------     -------------------         --------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

                                       4


<PAGE>

                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A COMPANY IN THE DEVELOPMENT STAGE)
                 STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
 NINE MONTHS ENDED APRIL 30, 2006 AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE 0F INCEPTION)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                    Common                                                   Deficit
                                     Stock                            Additional          Accumulated in
                                   Number of                            Paid in          the Developmental
                                    Shares           Amounts            Capital               Stage                 Total
                               ---------------  ---------------   ----------------  ---------------------    -----------------
<S>                             <C>             <C>              <C>                <C>                      <C>
Balance July 31, 2005              84,153,434   $        8,416    $     2,572,028   $         (4,877,998)    $     (2,297,554)

Issuance of common stock for
   services                           100,000   $           10    $         1,890                            $          1,900

Debt converted into stock          89,000,000   $        8,900    $       658,600                            $        667,500

Net Gain (Loss) at 4/30/2006                                                        $            482,136     $        482,136

                               ---------------  ---------------   ----------------  ---------------------    -----------------

                                  173,253,434   $       17,326    $     3,232,518   $         (4,395,862)    $     (1,146,018)
                               ===============  ===============   ================  =====================    =================

</TABLE>

The accompanying notes are an integral part of the financial statements.


                                        5

<PAGE>
                                         MURRAY UNITED DEVELOPMENT CORPORATION
                                         (A Company in the Development Stage)
                                               STATEMENTS OF CASH FLOWS
                                       NINE MONTHS ENDED APRIL 30, 2006 AND 2005
                                       CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                                                  (DATE OF INCEPTION)
                                                      (UNAUDTIED)


<TABLE>
<CAPTION>
                                                                                                           Cumulative
                                                                         2006              2005          from Inception
                                                                  ----------------   --------------    -----------------
<S>                                                              <C>                 <C>               <C>
Operating activities:
Net Income (Loss)                                                $        482,136    $    (181,181)    $     (4,345,864)
Adjustments to reconcile net loss to net cash used in
    operating activities:
Depreciation and Amortization                                                   -            6,249              260,497
Expenses paid through issuance of common stock by:
    Company                                                                 1,900                -              543,185
    Principal Stockholder                                                       -           17,500              220,900
Changes in operating assets and liabilities:
    Loan Receivable                                                             -                -               (2,000)
    Accounts Payable  Accrued Expenses                                    (39,672)         (31,933)             265,299
                                                                  ----------------   --------------    -----------------
Net cash provided by (used in) operating activities                       444,364         (189,365)          (3,057,983)
                                                                  ----------------   --------------    -----------------

Investing Activities:
    Purchase of furniture and  equipment                                        -                -             (260,497)
                                                                  ----------------   --------------    -----------------
Net cash provided by (used in) investing activities                             -                -             (260,497)
                                                                  ----------------   --------------    -----------------

Financing activities:
    Note payable to stock holder: Proceeds                        $       188,624    $     194,148     $      2,260,045
    Principal payments                                                 (1,300,500)          (7,500)          (1,427,167)
    Proceeds from the issuance of common stock (net)                      667,500            7,500            2,485,760
                                                                  ----------------   --------------    -----------------
Net cash provided by (used in) financing activities                      (444,376)         194,148            3,318,638
                                                                  ----------------   --------------    -----------------
Net increase (decrease) in cash and cash equivalents                          (12)           4,781                  158
Cash and cash equivalents, beginning of period                                170            1,033                    -
                                                                  ----------------   --------------    -----------------
Cash and cash equivalents, end of period                          $          158     $       5,814     $            158
                                                                  ----------------   --------------    -----------------
 Supplemental disclosure of cash flow data:
  Interest Paid                                                   $             -    $           -     $              -
                                                                  ----------------   --------------    -----------------

</TABLE>


                                        6
<PAGE>




                      MURRAY UNITED DEVELOPMENT CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                             April 30, 2006 and 2005


NOTE 1 - ORGANIZATION AND BUSINESS AND BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in
accordance with Generally Accepted Accounting Principles for interim financial
information and pursuant to the Regulation S-B of the Rules and Regulations of
the Securities and Exchanged Commission. Certain financial information and
footnote disclosure normally included in annual financial statements prepared in
accordance with Generally Accepted Accounting Principles have been condensed or
omitted. Accordingly, the accompanying financial statements should be read in
conjunction with the Company's annual financial statements and notes thereto
included in its Form 10-KSB for the year ended July 31, 2005.

The Company was incorporated on October 13, 1987 under the laws of the State of
Delaware. It was organized to further develop and exploit commercially certain
technology for a rotary internal combustion engine that would utilize
alternative fuels. The patent and related rights to the use of the technology
have been assigned to the Company.

The Company has been in the development stage since inception. Activities of the
Company have been limited to the acquisition of funds from the sale of its
common stock; the acquisition of the licensing rights for and, subsequently,
title to, the engine technology; research and development related to the
development of an initial fuel-driven prototype of the engine that was
successfully tested on a preliminary basis in January 1990; additional testing
and development of the engine prototype to obtain performance data for the
demonstration of the engine to potential licensees; research relating to the
ability of a proprietary cleaning solution, which the Company intends to license
from an affiliated entity, to remove air pollutants from coal burning flue gas
and certain air pollutants and contaminants from building air, as well as other
industrial uses; and research and development relating to production of hydrogen
for use in hydrogen fuel cells. The proprietary cleaning solution, for which we
have been granted trademark protection under the name Klenz-Safe, is owned by a
corporation whose sole shareholders are Mr. Anthony Campo and Mr. Dwight Foster,
the Chairman of the Board and Chief Executive Officer of the Company,
respectively.

The Company has presently suspended research and development on its Klenz-Safe,
hydrogen and Rotocam technologies due to a lack of funding and does not intend
to conduct such research and development during the next 12 months unless it is
able to obtain funds to do so from third parties. The Company intends to
continue to seek third parties with whom to form a business relationship in
order to assist it in funding such further research and development but is not
able to provide any assurances that it will be successful in doing so.

                                       7
<PAGE>


The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. However, as of April 30, 2006, the
Company had not been able to commercially utilize its hydrogen or engine
technology or the Klenz-Safe cleaning solution to generate revenues or cash
flows from operating activities. As a result, it has suffered recurring losses
from operations from inception that have generated the net stockholders'
deficiency of $1,096,018 as of April 30, 2006 and have also generated
significant working capital deficiencies from time to time.

Management does not expect the Company to generate any revenues or positive
operating cash flows during the twelve-month period subsequent to April 30,
2006. The limited amount of liquid resources available at April 30, 2006, and
the inability to generate operating revenues and cash flows raise substantial
doubts about the Company's ability to continue as a going concern.

Management believes that continuation of the Company as a going concern during
the twelve-month period subsequent to April 30, 2006 and thereafter will depend
upon the Company's ability to obtain sufficient additional working capital to
fund research and development activities on its hydrogen, Klenz-Safe and rotary
engine technologies and to fund the general and administrative expenses to be
incurred during the remaining development periods for such technologies.
Potential sources of such working capital include: the private or public sale of
common stock, the exercise of a substantial portion of the 15,398,000
outstanding Class B warrants prior to their proposed expiration on March 11,
2007, 14,898,000 of which are exercisable at $0.15 per share and 500,000 of
which are exercisable at $.225 per share; and borrowing additional amounts from
related parties or other sources. However, there can be no assurances that such
financing will be available. The accompanying financial statements do not
include any adjustments that might result from the uncertainties related to the
ability of the Company to continue as a going concern.

NOTE 2 - SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES:

Cash and Cash Equivalents
         For purposes of the statement of cash flows, the Company considers
         highly liquid temporary cash investments with an original maturity of
         three months or less to be cash equivalents.

Depreciation:
         Depreciation of furniture and equipment is provided over the estimated
         useful lives of the related assets using declining balance methods.

Research and development:
         Costs and expenses related to research and development are expensed as
         incurred.

Net loss per common share:
         Net loss per common share was computed on the basis of the weighted
         average number of shares of common stock outstanding during each
         period. The effect of assuming the

                                       8

<PAGE>



         exercise of outstanding warrants was antidilutive and, accordingly, not
         included in the computation of net loss per share.

NOTE 3 - RELATED PARTY TRANSACTIONS:

         Information as to agreements with, and notes payable to, related
         parties is set forth in the financial statements in the July 31, 2005
         Form 10-KSB and in the Company's 8-K filed with the SEC on December 30,
         2005.

NOTE 4 - STOCKHOLDER'S EQUITY:

         Information as to stockholders' equity is set forth in the financial
         statements in the July 31, 2005 Form 10-KSB.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF
OPERATION.

The following discussion and analysis provides information which we believe is
relevant to an assessment and understanding of our results of operations and
financial condition. This discussion should be read in conjunction with the
financial statements and notes thereto appearing elsewhere herein.

Statements in this Form 10-QSB that are not statements of historical or current
fact constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other unknown factors that
could cause our actual results to be materially different from the historical
results or from any future results expressed or implied by such forward-looking
statements. In addition to statements that explicitly describe such risks and
uncertainties, readers are urged to consider statements labeled with the terms
"believes," "belief," "intends," "anticipates" or "plans" to be uncertain and
forward-looking. The forward-looking statements contained herein are also
subject generally to other risks and uncertainties that are described from time
to time in our reports filed with the Securities and Exchange Commission.


RESULTS OF OPERATIONS

We have not derived any revenues from the license or sale of our technology and
have incurred cumulative losses from our inception on October 13, 1987 through
April 30, 2006 of $4,319,881. Our revenues from our inception on October 13,
1987 through April 30, 2006, aggregating $66,465, were derived from interest
earned and $632,500 from the forgiveness of debt by the majority shareholder,
which occurred on December 27, 2005. Interest income was $0 in the periods ended
April 30, 2006 and April 30, 2005 as a result of a lack of funds available for
investment.

                                       9
<PAGE>

The cumulative loss from inception includes research and development costs of
$876,771. There were no research and development costs in the quarterly periods
ended April 30, 2006 and April 30, 2005. We have presently discontinued our
research and development activities due to liquidity problems.

Our cumulative loss from inception includes general and administrative expenses
of $3,085,807. General and administrative expenses decreased to $65,529 in the
period ending April 30, 2006 from $74,521 in the period ending April 30, 2005,
or a 12.07% decrease. Decreases in general and administrative expenses can be
attributed to decreased professional fees.

Our cumulative loss from inception also includes past licensing fees, of which
there were none during the period, and cumulatively $57,260 since inception. The
elimination of licensing fees is the result of the legal settlement reached in
fiscal 1994.

The cumulative loss from inception also includes interest expense of $1,024,991
on promissory notes payable to our principal stockholder and Chairman. Interest
expense decreased to $84,835 in the period ending April 30, 2006 from $106,660
in the period ending April 30, 2005, primarily as a result of the forgiveness of
debt by our Chairman and principal stockholder.

Our net gain of $482,136 in the period ended April 30, 2006 increased by
$663,317 over the net loss of $181,181 in April 30, 2005. The forgiveness of
debt by our chairman and principal stockholder caused the overall increase.


LIQUIDITY AND CAPITAL RESOURCES

At April 30, 2006, we had cash and short-term investments totaling $158
(compared to liquid assets of $170 at July 31, 2005), a working capital decrease
of $12 (compared with a working capital decrease of $863 at July 31, 2005), and
a total stockholders' deficiency of $1,096,018 (compared to a deficiency of
$2,247,553 at July 31, 2005). The stockholders' deficiency decreased due to the
forgiveness of debt by our Chairman and principal stockholder.

At April 30, 2006, we had current liabilities in excess of current assets of
$30,177. We have not been able to commercially utilize our engine technology to
generate any revenue through that date, and as a result, we have suffered
recurring losses from operations from inception that have generated the net
capital deficiencies at April 30, 2006 as well as July 31, 2005 and significant
working capital deficiencies from time to time. We do not expect to generate any
revenues or positive operating cash flows during the twelve-month period
subsequent to April 30, 2006. Cash flow generated during the period ended April
30, 2006 was $484,364, and cash flow used during the period ended April 30, 2005
wa $189,365. The limited amount of liquid resources available at April 30, 2006,
and our inability to generate operating revenues and cash flows, raise
substantial doubts about our ability to continue as a going concern.

                                       10
<PAGE>

PLAN OF OPERATION

KLENZ-SAFE CLEANING SOLUTION

In February 2002, we reached an agreement in principle with Mr. Anthony
Campo, the Chairman of the Company, and with Mr. Dwight Foster, Chief Executive
Officer of the Company, pursuant to which we would obtain a license to use and
sell a proprietary cleaning solution owned by Foster-Campo Corp.
("Foster-Campo"), a corporation owned by Mr. Foster and Mr. Campo. Under the
terms of the proposed license, Foster-Campo would manufacture the cleaning
solution and supply it to our customers and then invoice us for their cost of
doing so without any profit to Foster-Campo. Foster-Campo would receive a
royalty payment of 50% of our net profit on sales of the proprietary solution to
our customers. Calculation of our net profit would include, but not be limited
to, amounts Foster-Campo invoices us for supplying our customers with the
cleaning solution.

In June 2000 Penn State Energy Institute, which is a facility of Penn State
University, conducted laboratory tests of the application of the Klenz-Safe
solution to the reduction of sulfur from coal burning flue gas. When coal
burning flue gas was introduced through Klenz-Safe using the Company's
proprietary methodology, the capture rate of sulfur exceeded 99.2% and
maintained a minimum 98% rate throughout the testing.

Due to the success of the initial testing, Penn State Energy Institute applied
to the U.S. Department of Energy for a grant to conduct a pilot test of
Klenz-Safe's ability to capture sulfur in coal burning flue gas. Such grant
request was not funded during the Department of Energy's 2003 funding period.
During our fiscal year ended July 31,2004, Penn State informed us that the cost
of further testing, which would be conducted in a working smoke stack to
simulate actual conditions, would be approximately $100,000. We are continuing
to seek third- party companies with whom to form a business relationship to
assist us in funding the cost of such testing. To date we have been unsuccessful
in forming such relationship, and we are not able to provide any assurances that
we will be able to enter into such a business relationship at any time. In
addition, even if we are able to enter into any such business relationship, it
is probable that we will be required to assign a partial interest in our
Klenz-Safe Technology, or the proceeds of such technology, to such third party
in consideration of such third party's agreement to assist in funding the
additional research.

If funding for the pilot study is obtained, the pilot tests would be conducted
in a working smoke stack to simulate actual conditions. If such tests are
conducted and are successful, we intend to seek distribution partners to assist
us in marketing and selling the Klenz-Safe product to the coal burning utility
market. We cannot provide any assurances that such testing will occur or, even
if it does occur, that it will be successful.

In 2001, we engaged a certified indoor air quality laboratory to perform a
series of laboratory tests on Klenz-Safe to determine Klenz-Safe's ability to
remove pollutants and contaminants from building air and to examine other
potential industrial uses. The tests simulated wet scrubber equipment, which is
commonly used device for removing pollutants from building air.

                                       11
<PAGE>


Based on generally known industry practices, management believes that the range
of pollutants captured by Klenz-Safe and the rate of such capture have not been
previously achieved in a single operation. The following were the material
findings of the laboratory tests:

      -  Klenz-Safe captured 90% of carbon monoxide in tested air streams;

      -  Klenz-Safe captured 70% of both nitrogen dioxide and of nitrous oxide
         in tested streams;

      -  Klenz-Safe added no detectable volatile organic compounds to the air
         stream at elevated temperatures, indicating that Klenz-Safe could be
         applied to indoor air cleaning systems without the need of additional
         filtering.

     Based on our tests of Klenz-Safe, management believes that Klenz-Safe
possesses the following environmentally beneficial attributes:

o    Klenz-Safe  is a  non-toxic,  non-hazardous  composition  that  requires no
     special equipment to protect the personnel using it;

o    Klenz-Safe achieves a higher starting alkalinity and has a longer
     operating life than can be obtained with commercial caustic materials or
     lime slurries; and

o    Klenz-Safe protects rather than corrodes metal compounds and surfaces.

     Management presently believes that Klenz-Safe may be useful in the
following applications:

o    Air pollution control in wet scrubber equipment, which are commonly used to
     remove pollutants from building air;

o    Containment and neutralization of liquids and compounds;

o    Decontamination of equipment in pharmaceutical production;

o    Air filtration in indoor air quality control; and

o    Flue and combustion gas scrubbing.

We are continuing to seek third- party companies with whom to form a business
relationship to assist us in funding the cost of testing Klenz-Safe's ability to
remove contaminants from building air on a cost effective basis. To date we have
been unsuccessful in forming such relationship, and we are not able to provide
any assurances that we will be able to enter into such a business relationship
at any time. In addition, even if we are able to enter into any such business
relationship, it is probable that we will be required to assign a partial
interest in our Klenz-Safe Technology, or the proceeds of such technology, to
such third party in consideration of such third party's agreement to assist in
funding such additional testing.

                                       12
<PAGE>

To date, the cost of the research at Penn State was approximately $9,000, and
the cost of the research by the certified air quality laboratory was
approximately $5,000. In addition, during fiscal 2003 and 2004 we incurred
approximately $10,000 and $4,700, respectively for research relating to Klenz
Safe's ability to remove sulfur from flue burning smoke stacks. Funding for all
such research was provided by loans to the Company from our Chairman, Mr.
Anthony Campo. The Company has not conducted any research and development
activities on the Klenz-Safe product during fiscal 2005 and does not intend to
conduct such research and development during the ensuing 12 months unless it is
able to obtain funds to do so from third parties. Management is not able to
provide any assurances that such third party funding will be available at any
time during such 12-month period.


We have been granted trademark protection for the name "Klenz-Safe" from the US
Patent and Trademark Office (PTO). The method of application of the Klenz-Safe
formula for removal of sulfur from coal burning flue gas was developed by a
consultant to the Company, who assigned to us his rights to such know-how and
his rights under a provisional patent application filed with the PTO covering
such know-how. In October 2002 we filed an application for a provisional patent,
which extends the Klenz-Safe technology into additional indoor air quality
applications. In February 2003, we filed an amendment to the October 2002
provisional patent application that revised certain data contained in the
October 2002 provisional patent application. In February 2004 we filed a
non-provisional patent application relating to Klenz-Safe. We are continuing to
attempt to obtain such patents; however, we cannot provide any assurances that
the PTO will grant a patent on our Klenz-Safe technology.

HYDROGEN PRODUCTION TECHNOLOGY

In light of the energy plan of current administration encouraging the use of
hydrogen fuel cells in place of fossil fuels such as oils and gas, management
has begun to investigate a technology that would produce hydrogen from sunlight
through the use of a proprietary device and solution. The hydrogen gas produced
would be used to supply on demand, low cost hydrogen fuel to hydrogen-oxygen
fuel cells in order to meet stationary and mobile electric power requirements.
Stationary uses would include residential and commercial heating systems, and
mobile uses would include electric and hybrid fuel cell powered vehicles.

In June 2002, we entered into an oral agreement with George Johnson and William
L. Johnson (the "Inventors") to develop a method and apparatus for production of
photo galvanic hydrogen (the "PGH Technology") and to prepare and file a
provisional patent application (the "Provisional Patent Application") relating
thereto in the PTO. The Inventors further agreed that, upon filing of the
Provisional Patent Application, they would negotiate with the Company for an
assignment of all of their interest in the PGH Technology and the Provisional
Patent Application to the Company. In consideration for the Inventors' services,
the Company agreed to issue to each of the Inventors 100,000 shares of the
Company's Common Stock and to register such shares with the Securities and
Exchange Commission. The Company subsequently formalized the oral agreement with
the Inventors by a written agreement dated as of June 1, 2002.

In July 2003, the Inventors filed the Provisional Patent Application with the
PTO. By

                                       13
<PAGE>

Agreement dated October 2, 2003 , the Company entered into a Technology
Assignment Agreement with the Inventors pursuant to which the Inventors agreed
to assign to the Company all of their rights in the PGH Technology, in the
Provisional Patent Application, and in all letters patent, both domestic and
foreign, that may be granted for the PGH Technology. In consideration for such
assignment, we granted to the Inventors a right of first refusal to perform all
consulting services derived from contracts and/or grants entered into between
the Company and third parties relating to the development of the PGH Technology.
We further agreed to reimburse the Inventors up to $5,000 for their out-of
pocket expenses incurred for materials and supplies to build apparatus relating
to the PGH Technology and for collecting, and testing for, the production of
hydrogen.

Pursuant to the Technology Assignment Agreement, the Inventors executed an
Assignment of Invention & Patent Rights, dated October 2, 2003 (the
"Assignment"), under which the Inventors assigned to the Company their rights in
the PGH Technology, all applications for Letters Patent that may be filed for
the PGH Technology, and all Letters Patent for the PGH Technology in any
country.

In October 2003, but effective as of July 18, 2003, we entered into Consulting
Agreements with each of the Inventors (the "Consulting Agreements") pursuant to
which the Inventors agreed to assist the Company in obtaining grants from and/or
contracts with third parties for research and development relating to the PGH
Technology and in obtaining a patent on the technology described in the
Provisional Patent Application. All services under such Consulting Agreements
have been suspended by the Inventors for personal reasons.

In October 2004, we transferred the apparatus for our PGH Technology to the
University of Kansas for purposes of conducting further testing of the ability
of our PGH Technology to produce hydrogen. However, our discussions with the
University have been discontinued, and we are presently seeking other parties to
continue such testing.

The Company did not conduct any research and development activities on the PGH
Technology during fiscal 2005 and does not intend to conduct such research and
development during the ensuing 12 months unless it is able to obtain funds to
conduct such activities from third parties. Management is not able to provide
any assurances that such third party funding will be available at any time
during such 12-month period.

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<PAGE>

ROTORCAM ENGINE

We do not expect to further develop the Rotorcam Engine during the next 12-month
period. We have been advised by Southwest Research Institute that it would take
up to 4 years and $3 million in order to develop the Rotorcam Engine for
commercial sale. We therefore first intend to use any funds that may become
available to further develop our Klenz-Safe and PGH technologies, which we
believe have the potential to generate operating revenues much earlier than the
Rotorcam Engine. We will, however, continue to evaluate possible
commercialization of the Rotorcam Engine in light of future facts and
circumstances.

ITEM 3.  CONTROLS AND PROCEDURES

The Company is a development stage company and currently has no revenues,
significant assets or independent operations. Its current Chief Executive
Officer, Dwight Foster, and its current Chief Financial and Accounting Officer,
Anthony Campo, are the only individuals who accumulate financial information
required to be disclosed in the Company's financial reports. Since Mr. Foster
and Mr. Campo are the only individuals who accumulate such information, they
have concluded that the information they accumulate is obtained by them in such
a manner as to permit them to make timely decisions regarding disclosure. They
have also concluded that the Company's controls and procedures are effective to
ensure that information required to be disclosed in the reports that the Company
files under the Exchange Act is recorded, processed, summarized and reported
within the periods required by the Exchange Act.

No significant changes in the Company's financial controls over financial
reporting have come to management's attention during the Company's previous
fiscal quarter that have materially affected or are likely to materially affect
the Company's internal control over financial reporting.

As of the end of the quarterly period covered by this report, the Company
carried out an evaluation, under the supervision of the Company's Chief
Executive Officer and Chief Financial and Accounting Officer, of the
effectiveness of the design and operation of the Company's controls and
procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon
that evaluation, they concluded that the Company's disclosure controls and
procedures during the prior quarterly period were effective to enable the
Company to record, process, summarize and report information required to be
included in this quarterly filing.


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities and Use of Proceeds - None

Item 3.  Defaults upon Senior Securities

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<PAGE>

We issued a promissory note to Mr. Campo, dated August 1, 2005, in the principal
amount of $2,087,278 (the "August 1, 2005 Outstanding Indebtedness"), which note
consolidated amounts we owed him under our prior notes. The August 1, 2005 Note
bears interest at 7.5% per annum, which is payable quarterly on each November 1,
February 1, May 1 and August 1, and matures on August 1, 2006. We have defaulted
on our quarterly interest payments due under the August 1, 2005 Note on November
1, 2005, February 1, 2006 and May 1, 2006.

On December 27, 2005, Mr. Campo exercised his right to convert $667,500 into
89,000,000 shares of our common stock. On December 30, 2005, except for
$787,278, Mr. Campo forgave the balance of the August 1, 2005 Outstanding
Indebtedness, which amounted to $632,000. This amount was recorded as income on
the January 31, 2006 Statement of Operations. Between August 1, 2005 and April
30, 2006, Mr. Campo loaned the Company an additional $45,600. The outstanding
amount due under the 2005 Note as of April 30, 2006 was $832,278. Since we do
not have any revenues, it is doubtful that we will be able to pay any interest
or principal amounts due under the August 1, 2005 Note until such time as we
have operating revenues or we raise funds from an independent source, both of
which events may not occur at any time.

Item 4.  Submission of Matters to a Vote of Security Holders - None

Item 5.  Other Information: None

Item 6.  Exhibits


         (31)     (a) Certification of Chief Executive Officer in accordance
                  with 18 U.S.C. Section 1350, as adopted by Section 302 of the
                  Sarbanes-Oxley Act of 2002

                  (b) Certification of Principal Financial Officer in accordance
                  with 18 U.S.C. Section 1350, as adopted by Section 302 of the
                  Sarbanes-Oxley Act of 2002


         (32)     (a) Certification of Chief Executive Officer in accordance
                  with 18 U.S.C. Section 1350, as adopted by Section 906 of the
                  Sarbanes-Oxley Act of 2002

                  (b) Certification of Principal Financial Officer in accordance
                  with 18 U.S.C. Section 1350, as adopted by Section 906 of the
                  Sarbanes-Oxley Act of 2002


                                       16
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                   MURRAY UNITED DEVELOPMENT CORPORATION
                                   (Registrant)


                           By:     /s/ Dwight Foster
                                   Dwight Foster
                                   Chief Executive Officer

                           Dated:  June 12, 2006


                           By:     /s/ Anthony S. Campo
                                   Anthony S. Campo, Executive Vice President
                                   Secretary and Treasurer
                                   Chief Financial Officer

                          Dated:   June 12, 2006




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