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, 2001

                                       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 ________

66,703,434 shares of the registrant's Common Stock ,$.0001 per share, were
outstanding as of June 11, 2001.

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION

                               TABLE OF CONTENTS
                                  FORM 10-QSB

PART 1 FINANCIAL INFORMATION

Item Number                                                            Page

         Item 1.  Financial Statements

                  Balance Sheets                                         2

                  Statements of Operations                               4

                  Statements of Stockholders' Deficiency                 6

                  Statements of Cash Flow                                7

                  Notes to Financial Statements                          8

         Item 2.  Management's Discussion and Analysis
                  Or Plan of Operation                                  11

PART II OTHER INFORMATION

         Items 1-6.                                                     16

         Signatures                                                     18

<PAGE>
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

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

                                          April 30, 2001    July 31, 2000
                                          --------------    -------------
Current assets

Cash & cash equivalents                      $   798          $ 9,796
                                             -------          -------

Total current assets                         $   798          $ 9,796

Furniture & equipment, at cost, net
of accumulated depreciation                   69,212           76,844
                                             -------          -------

Total Assets                                 $70,010          $86,640
                                             =======          =======

    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, 2001         July 31, 2000
                                                          --------------         -------------
<S>                                                        <C>                   <C>
Current liabilities:
     Accounts payable and Accrued Expenses                 $    43,393           $    46,342
     Note Payable Stockholder                                       --                    --
                                                           -----------           -----------
     Total current liabilities                                  43,393                46,342

Other liabilities:
     Accrued Interest Payable                                   67,815               121,092
     Notes payable other-stockholder                         1,226,719             1,055,925
     Accrued Compensation                                      148,128               148,128
                                                           -----------           -----------
    Total other liabilities                                  1,442,662             1,325,145
                                                           -----------           -----------
    Total liabilities                                        1,486,055             1,371,487
                                                           -----------           -----------
Stockholders' deficiency:

Common Stock, par value $.0001:
     Authorized 200,000,000 shares;
     issued and outstanding
     66,703,434 shares and 63,453,434                            6,671                 6,346
Additional paid-in capital                                   2,307,151             2,169,351
Deficit accumulated in the development stage                (3,729,867)           (3,460,544)
                                                           -----------           -----------
     Total stockholders' deficiency                         (1,416,045)           (1,284,847)
                                                           -----------           -----------
     Total Liabilities and Stockholders' Deficiency        $    70,010           $    86,640
                                                           ===========           ===========
</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, 2001 AND 2000
                  AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                              (DATE OF INCEPTION)
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                CUMULATIVE
                                                                               AMOUNTS FROM
                                                  2001           2000            INCEPTION
                                                  ----           ----          ------------
<S>                                          <C>             <C>               <C>
Income
Interest income                              $        --     $        --       $    66,465
                                             -----------     -----------       -----------
Total Income                                          --              --            66,465

Expenses
Research and Development costs                        --              --           854,653
Licensing fees-stockholder and affiliate              --              --            57,260
General and administrative expenses              201,510          62,685         2,447,840
Interest expense-stockholder and affiliate        67,813          53,095           436,579
                                             -----------     -----------       -----------
Total Expenses                                  (269,323)       (115,780)       (3,796,332)
                                             -----------     -----------       -----------

Net loss                                     $  (269,323)    $  (115,780)      $(3,729,867)
                                             -----------     -----------       -----------

Net loss per common share                         (0.004)    $      (nil)           (0.058)

Weighted average number of
common shares outstanding                     64,413,706      63,453,434        64,413,706
                                             -----------     -----------       -----------
</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 OPERATIONS
                   THREE MONTHS ENDED APRIL 30, 2001 AND 2000
                                  (UNAUDITED)



                                                       2001           2000
                                                       ----           ----
Interest income                                     $       -      $      -
Research and Development costs                                            -
Licensing fees- stockholder and affiliate                   -             -
General and administrative expenses                   158,142        36,439
Interest expense- stockholder and affiliate            22,907        18,500
                                                    -----------------------
Total                                                (181,049)      (54,939)
                                                    -----------------------
Net loss                                            $(181,049)     $(54,939)
                                                    -----------------------
Net loss per common share                           $    (nil)     $   (nil)


    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 STOCKHOLDERS' EQUITY (DEFICIENCY)
 NINE MONTHS ENDED APRIL 30, 2001 AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                              (DATE 0F INCEPTION)
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                           Deficit
                                                                       Accumulated in
                                     Common               Additional        the
                                  Stock Number             Paid in      Developmental
                                   of Shares    Amounts    Capital          Stage          Total
                                  ------------  -------    -------      -------------      -----
<S>                                <C>           <C>      <C>            <C>            <C>
Balance July 31, 2000              63,453,434    $6,346   $2,169,351     $(3,460,544)   $(1,284,847)
                                   ----------    ------   ----------     -----------    -----------


Issuance of common stock for
services                            3,250,000       325      137,800                        138,125
                                   ----------    ------   ----------     -----------    -----------

Net loss for the nine months
ended April 30, 2001                                                        (269,323)      (269,323)
                                   ----------    ------   ----------     -----------    -----------
                                   66,703,434    $6,671   $2,307,151     $(3,729,867)   $(1,416,045)
                                   ==========    ======   ==========     ===========    ===========
</TABLE>

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

                                        6
<PAGE>
                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)
                            STATEMENTS OF CASH FLOWS
                   NINE MONTHS ENDED APRIL 30, 2001 AND 2000
          CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987 (DATE OF INCEPTION)
                                  (UNAUDTIED)

<TABLE>
<CAPTION>
                                                                                           Cumulative
                                                               2001        2000          from Inception
                                                         ----------------------------------------------
<S>                                                         <C>         <C>               <C>
Operating activities:
Net Loss                                                     (269,323)   (115,780)         (3,729,867)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciaiton & Amortization                                     7,631       9,014             191,283
Expenses paid through issuance of common stock by:
    Company                                                   138,125           -             363,160
    Principal Stockholder                                           -           -             220,900
Changes in operating assets and liabilities:
    Accounts Payable  Accrued Expenses                        (56,225)     27,830             259,340
                                                         ---------------------------------------------
Net cash used in operating activities                        (179,792)    (78,936)         (2,695,184)
                                                         ---------------------------------------------
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                  $ 170,794    $ 77,145          $1,278,386
    Principal payments                                              -           -             (51,667)
    Proceeds from the issuance of common stock(net)                 -           -           1,729,760
                                                         ---------------------------------------------
Net cash provided by financing activities                     170,794      77,145           2,956,479
                                                         ---------------------------------------------
Net increase (decrease) in cash and cash equivalents           (8,998)     (1,791)                798
Cash and cash equivalents, beginning of period                  9,796       2,038                   -
                                                         ---------------------------------------------
Cash and cash equivalents, end of period                    $     798    $    247          $      798
                                                         ---------------------------------------------
 Supplemental disclosure of cash flow data:
  Interest Paid                                             $       -    $      -          $   32,420
                                                         ---------------------------------------------
</TABLE>

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

                                        7
<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)

NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and business and basis of presentation:

In the opinion of management, the accompanying unaudited condensed financial
statements reflect all adjustments, consisting of normal recurring accruals,
necessary to present fairly the Company's financial position as of April 30,
2001 and its results of operations and cash flows for the nine months ended
April 30, 2001. These unaudited condensed financial statements should be read in
conjunction with the financial statements and other information in the July 31,
2000 Form 10-KSB.

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; and the additional
testing and development of the engine prototype to obtain performance data for
the demonstration of the engine to potential licensees. The Company intends to
continue to conduct research and development activities with respect to the
manufacture of a rotary engine during the ensuing twelve month period
principally through Southwest Research Institute, assuming it is able to raise
the funds necessary to conduct such research, of which there can be no
assurances.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. However, as of April 30, 2001, the
Company had not been able to commercially utilize its engine technology 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 $1,416,045 as of April 30, 2001 and have also
generated significant working capital deficiencies from time to time. Management
does not expect the Company to generate any significant revenues or positive
operating cash flows during the twelve-month period subsequent to April 30,
2001. The limited amount of liquid resources available at April 30, 2001 and the
inability to generate operating revenues and cash flows raise substantial doubts
about the Company's ability to continue as a going concern.

                                       8

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)

NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and business and basis of presentation (concluded):

The Company plans to continue research and development activities principally
through Southwest Research Institute on at least a limited basis through the
twelve-month period subsequent to April 30, 2001. However, management believes
that the net liquid assets available at April 30, 2001 will not be sufficient to
enable the Company to meet its obligations and to continue as a going concern
during the ensuing twelve-month period even on this limited basis without
limiting research and development and other operating activities more severely
unless it obtains additional debt or equity financing and/or government
sponsored research grants.

Management also believes that continuation of the Company as a going concern
during the twelve-month period subsequent to April 30, 2001 and thereafter will
depend upon the Company's ability to obtain sufficient additional working
capital to fund the building of a second prototype of its engine and such other
research and development activities as are necessary to accumulate sufficient
data for the marketing and licensing of the engine technology and the general
and administrative expenses to be incurred during the remaining development
period. Potential sources of such working capital include: the private or public
sale of common stock (the Company has historically depended primarily on the
sale of equity securities to finance its operations); the exercise of a
substantial portion of the 15,398,000 outstanding Class B warrants prior to
their proposed expiration on March 11, 2003, 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.

                                       9

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)

NOTES TO FINANCIAL STATEMENTS

Note 2 - Summary of other significant accounting policies:

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 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, 2000 Form
10-KSB

Note 4 - Stockholder's Equity:

         Information as to stockholders' equity is set forth in the financial
statements in the July 31, 2000 Form 10-KSB.

                                       10

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)


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.

         We are a developmental stage enterprise that commenced operations on
October 13, 1987 and that is attempting to exploit commercially certain
technology we are in the process of developing, the Rotorcam Engine, a rotary
internal combustion engine. Historically, we have intended to generate revenues
primarily through the licensing of the engine technology and secondarily through
the manufacture and sale of engines or related components or services. We are
currently investigating avenues of diversifying into other businesses as
described in the "Plan of Operation" section of this Report, which begins on
page 13.

         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, 2001 of $3,729,867.

Results Of Operations

Our revenues from our inception on October 13, 1987 through April 30, 2001
aggregating $66,465 were derived from interest earned. Interest income was zero
in the periods ended April 30, 2001 and April 30,2000 as a result of a decrease
in the amount of funds available for investment.

The cumulative loss from inception includes research and development costs of
$854,653. Research and development costs were $0 during the quarters ended
April 30, 2001 and April 2000. We have had to reduce substantially our research
and development activities due to liquidity problems.

                                       11

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)


Our cumulative loss from inception includes general and administrative expenses
of $2,447,840. General and administrative expenses increased to $201,510 in
April,2001 from $62,685 in April ,2000, or a 221% increase. Increased general
and administrative expenses can be attributed primarily to expenses accrued in
connection with the issuance of an aggregate of 3,250,000 shares of our common
stock to a director and two consultants and to increased legal and other
professional expenses.

Our cumulative loss from inception also includes past licensing fees of $0
during the quarterly period ended April 30, 2001 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 $436,579 on
promissory notes payable to our principal stockholder and Chairman. Interest
expense increased to $67,813 as of April 30, 2001 from $53,095 in April ,2000,or
a 28% increase, primarily as a result of increased loans to us by our chairman
and principal stockholder.

Our net loss of $269,323 in the period ended January, 2001 increased by
$153,543, or 132%, over the net loss of $115,780 in April 30, 2000. Increases in
general and administrative costs and interest expense caused the overall
increase.

Liquidity And Capital Resources

At April 30, 2001, we had cash and short-term investments totaling $798(compared
to liquid assets of $9,796 at July 31, 2000), a working capital decrease of
$8,998 (compared with a working capital increase of $7,758 at July 31, 2000) and
a total stockholders' deficiency of $1,416,045(compared to a deficiency of
$1,284,847 at July 31, 2000). The stockholders' deficiency increased due to the
net loss of $269,323 incurred in the nine months ended April 30, 2001.

At April 30, 2001, we had current liabilities in excess of current assets of
$42,579. 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, 2001 as well as July 31, 2000 and significant
working capital deficiencies from time to time. We do not expect to generate any
significant revenues or positive operating cash flows during the twelve-month
period subsequent to April 30, 2001. Cash flows used by operating activities
were $179,792 and $78,936 in April,2001 and April 2000, respectively. The
limited amount of liquid resources available at April 30, 2001,and our inability
to generate operating revenues and cash flows ,raise substantial doubts about
our ability to continue as a going concern.

                                       12

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)

Plan of Operation

         In July 1998 we entered into an agreement with Southwest Research
Institute (SRI). Under our agreement with SRI, SRI agreed to provide an
engineering study of the Rotorcam Engine at a cost of $9,750. SRI's study
included an evaluation of existing Rotorcam Engine hardware and data, including
test data on the current prototype, and design and analytical data that we had
obtained to date. In addition, SRI agreed to prepare an evaluation report
summarizing its findings and a technical and cost proposal for the next phase of
work.

         In December 1998, SRI issued its Report in which SRI concluded that
there were three significant advantages of the Rotorcam Engine over conventional
reciprocating engines: higher torque at a specified rpm, a potential of improved
cycle efficiency and energy savings, and the improvement of overall efficiency
and packaging resulting from the ability to eliminate a gear box.

         In response to the Report, assuming funding becomes available, which we
cannot provide you any assurances will occur, we have determined to redesign and
rebuild a Second Prototype to address the issues raised by SRI in its Report. We
estimate that the cost of such Second Prototype will be approximately $350,000
to $375,000 and that it will take approximately 15 to 18 months from the time
such funding becomes available to complete.

         If the Second Prototype shows clear advantages of the Rotorcam Engine
over conventional reciprocating engines in a specific market, and if the
necessary funds are then available, we plan to commission the development of a
Third Prototype, which would be designed to address the performance, cost,
reliability and producibility issues associated with the chosen market.

         We estimate that the cost to develop such a Third Prototype would be
between $2 million and $3 million and that it would take between 18 to 24 months
from the time the Second Prototype is completed and such funding becomes
available to complete. During this phase of development we plan to commission
the production of several variations of the Third Prototype that would be used
for different purposes, including performance development, durability
assessment, and demonstrators to be used in field testing.

         We are attempting to locate a funding source for the $350,000 to
$375,000 amount required to complete the Second Prototype. Possible sources for
funding include exercise of our 15,398,000 outstanding Class B Warrants, an
offering our equity securities, and/or borrowing from private sources. We intend
to attempt to raise the funds necessary to complete the Second Prototype from
such sources but we cannot give you any assurances that we will be able to do
so. If we are unable to raise such funds, we may never be able to further
develop the Rotorcam Engine.

                                       13

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)

         On April 20, 2000, we filed a Registration Statement with the United
States Securities and Exchange Commission ("SEC"), which became effective on May
3, 2000. The Registration Statement, together with the qualification or
exemptions from qualification obtained in several states where holders of our
Class B Warrants reside, permit such holders to exercise their Class B Warrants
under the laws of the United States and those states where we have either
qualified or obtained an exemption from qualifying the shares of our Common
Stock for which the Warrants are exercisable. To date, none of such Class B
Warrant holders have exercised their Class B Warrants due principally to the
fact that the market price of our Common Stock has been lower than the exercise
price of the Class B Warrants since the effective date of the Registration
Statement. Unless the market price of our Common Stock shall exceed the exercise
price of the Class B Warrants in the future, it is unlikely that any of the
holders of such Warrants will exercise them and we may not be able to raise the
funds needed to develop the Second Prototype from such source.

         We believe that if the Second Prototype is successfully completed, we
will be able to raise sufficient funds to complete the Third Prototype from
research grants, licensing fees and/or equity financing. However, since a
decision to proceed with a Third Prototype will depend on the results obtained
from the Second Prototype, we cannot give you any assurances that we will decide
to build a Third Prototype or that we will, in fact, be able to obtain
sufficient funds to complete such Third Prototype. Since a Third Prototype is
essential to our ability to market the Rotorcam Engine, any determination by us
that it is not advisable to produce the Third Prototype, or our financial
inability to do so, will have a materially adverse effect on our ability to
successfully market the engine.

         In view of the projected extended period of time that we estimate it
will take to complete the Second and Third Prototypes, assuming that we are able
to obtain the funds to do, of which we cannot provide you with any assurances,
we are presently seeking opportunities that will permit us to diversify into
businesses in addition to the Rotorcam Engine. Our current diversification
efforts are focused on two recently formed businesses owned jointly by Mr.
Anthony Campo, the Chairman of the Company, and Mr. Dwight Foster, the President
of the Company, and on the development of certain technology to remove gaseous
pollutants from coal flue gas.

         One of the Campo-Foster businesses manufactures and distributes a line
commercial degreasers that are environmentally safe and are not harmful to
contact surfaces or users. Products will be marketed to the automotive,
restaurant, marine, airline and other industries. Although this company has
begun sales, it has not achieved significant revenues to date. The second
Campo-Foster business is presently engaged in researching and developing an
emissions neutralizer control system that would counteract the pollutants
generated by fuel burning devices and equipment.

                                       14

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)

         If one of or both of the Campo-Foster business begins to achieve
sufficient profitability, Messrs. Campo and Foster plan to make an offer to us
to merge such profitable business(es) into the Company. Any such transaction
would need to be approved by the disinterested member of our Board of Directors.

         Each of the Campo-Foster businesses is an early stage company, and we
cannot provide you with any assurances that either of them will achieve a level
of profitability that would make it mutually advantageous to merge the
Campo-Foster businesses with the Company. Therefore, shareholders should not
assume that we will merge with both or even one of these businesses at any time.
Moreover, we have not entered into a binding agreement with Messrs. Campo and
Foster, and, therefore, they are not legally obligated to proceed with a merger.
We also cannot provide shareholders with any assurances that we will be able to
agree with Mr. Campo and Mr. Foster on the terms of any such merger.

         In addition to our possible merger with one or both of the Campo-Foster
businesses, in a further attempt to diversify our business, we have contracted
with the Energy Institute at Penn State University to perform a series of tests
to assess the ability of a proprietary cleaning solution to remove gaseous
pollutants from coal flu gas. Funding for the testing was provided by a loan
from our Chairman.

         The rights to the proprietary cleaning solution being tested is owned
by one of the Campo-Foster businesses. If the tests are successful, the
Campo-Foster business will submit the test results to the U.S. Environmental
Protection Agency to make the EPA aware of the availability of this technology
and will license to us the exclusive right to market and sell the proprietary
cleaning solution solely for use in the coal flu gas removal application. The
Campo-Foster business will retain the rights for all other applications of this
product. Upon obtaining such license, we intend to seek to develop a market for
the cleaning solution and may further seek to enter into a joint venture
arrangement with a manufacturer of the scrubbing equipment that is necessary to
implement this technology.

         The tests being performed at Penn State University have not yet been
completed. However, even if the tests are successful, there can be no assurances
that we will be able to successfully develop a market for the cleaning solution
in the coal flu gas removal application.

                                       15

<PAGE>
                     MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)

PART II - OTHER INFORMATION

Item 1. Legal Proceedings - None

Item 2. Changes in Securities and Use of Proceeds

Effective as of January 4, 2001, we issued 2,000,00 shares of our common stock,
$.0001 par value, to Mr. Frank Pecorella, who is a director of the company.
These shares were issued in consideration of Mr. Pecorella's past services to
the company. Mr. Pecorella has been serving as one of our directors since
December 1998 without compensation. Although the board approved the issuance of
Mr. Pecorella's shares on January 4, 2001, such shares were not finally issued
until April 14, 2001 due to a delay in issuing such shares by our transfer agent

On April 17, 2001, we issued 1,000,000 shares of our common stock to Mr. Robert
Vandine and 250,000 shares of such common stock to Mr. Newell Dimen. Such shares
were issued as compensation for their services to the company, principally in
connection with our efforts to diversify by engaging in the testing for possible
marketing and sale of a proprietary cleaning solution for use in coal and oil
burning smoke stacks.

The shares issued to Mr. Pecorella, Mr. Dimen and Mr. Vandine were issued in
reliance upon the exemption from the registration requirements of the Securities
Act of 1933 provided under Section 4(2) of such Act. Such shares are therefore
"restricted securities" within the meaning of the Securities Act of 1933 and may
not be transferred by any such individual unless such shares are registered or
there is an exemption available with respect to such transfer.

On April 17, 2001, the Board also approved the issuance of a non-qualified
option to Mr. Dwight Foster to purchase 15,000,000 shares of our common stock at
an exercise price of $.02 per share, which was the closing price of our common
stock on the date the option was approved. The expiration, termination and other
terms of such option have not yet been agreed upon by us and Mr. Foster. In
awarding such option, the Board considered Mr. Foster's past services to us and
that Mr. Foster has served as President of the company since December 1998, and
as director of the company since March 2000, in each case without compensation.

Item 3. Defaults upon Senior Securities

We issued a promissory note to Mr. Campo, dated August 1, 2000, in the amount of
$1,193,294, which consolidated amounts we owed to Mr. Campo under our prior
notes . The August 1, 2000 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 1,2001.

We have defaulted on our quarterly interest payment due on November 1,2000 ,
February 1, and May 1, 2001. As of April 30, 2001, a total of $67,815 in unpaid
interest was owed to Mr. Campo under the August 1, 2000 note. 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, 2000 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. Mr. Campo has the right to convert unpaid
amounts due under the August 1, 2000 Note into one share of our common stock for
each $.0075 due under such note so converted. In addition, Mr. Campo has the
right at any time to declare amounts due under such note immediately due and
payable.

                                       16

<PAGE>

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

Item 5.  Other Information-None

Item 6. Exhibits and Reports on Form 8-K

         (A) Exhibits

                  None

         (B) Reports on Form 8-K


There were no reports on Form 8-K during the quarter ended April 30, 2001.


                                       17
<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
                                      -----------------
                                      President and Chief Executive Officer

                                      Dated: June 11, 2001

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

                                      Dated: June 11, 2001

Pursuant to the requirements of Securities Exchange Act of 1934, this report has
been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.

                                      /S/ Anthony S. Campo
                                      --------------------
                                      Anthony S. Campo,
                                      Chairman of the Board

                                      /S/ Dwight Foster
                                      -----------------
                                      Dwight Foster, Director

                                      /S/ Francis Pecorella
                                      ---------------------
                                      Francis Pecorella, Director

                                      Dated: June 11, 2001

                                       18