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 October 31, 2004

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

80,153,434 shares of the registrant's Common Stock, $.0001 per share, were
outstanding as of December 10, 2004.






<PAGE>


                      MURRAY UNITED DEVELOPMENT CORPORATION

                                TABLE OF CONTENTS
                                   FORM 10-QSB



                          PART I FINANCIAL INFORMATION


Item Number                                                               Page

Item 1.             Financial Statements

                          Balance Sheets                                    3

                          Statements of Operations                          5

                          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                                   10



                    PART II OTHER INFORMATION

Items 1- 6.                                                                16

Signatures                                                                 18


                                       2

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

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


                                    October 31, 2004            July 31, 2004
                                    ----------------           --------------

Current assets


Cash & cash equivalents                 $ 1,203                    $ 1,033
Loan Receivable                           2,000                      2,000
                                        -------                    -------
Total current assets                    $ 3,203                    $ 3,033


Furniture & equipment, at
cost, net of accumulated
depreciation                             39,588                     41,671
                                        -------                    -------
Total Assets                            $42,791                    $44,704
                                        =======                    =======







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


                                       3

<PAGE>

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




                                               October 1, 2004   July 31, 2004
                                               ---------------   -------------

Current liabilities:
    Accounts payable and Accrued Expenses       $     36,197     $    22,742
                                                -------------    ------------
    Total current liabilities                         36,197          22,742

Other liabilities:
     Accrued Interest Payable                         35,266         127,399
     Notes payable-other stockholder               1,890,305       1,752,106
     Accrued Compensation                            148,128         148,128
                                                -------------    ------------
    Total other liabilities                        2,073,699       2,027,633
                                                -------------    ------------
    Total liabilities                              2,109,896       2,050,375
                                                -------------    ------------


Stockholders' deficiency:

Common Stock, par value $.0001:
     Authorized 200,000,000 shares;
     issued and outstanding
     80,153.434 shares and  79,953,434                 8,016           8,016
                                                   2,547,431       2,547,431
Deficit accumulated in the development stage      (4,622,552)     (4,561,118)
                                                -------------    ------------
     Total stockholders' deficiency               (2,067,105)     (2,005,671)
                                                -------------    ------------

     Total Liabilities and Stockholders'
          Deficiency                            $     42,791     $    44,704
                                                =============    ============


    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
              FOR THE THREE MONTHS ENDED OCTOBER 31, 2004 AND 2003
                  AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDITED)


                                                                   CUMULATIVE
                                                                     AMOUNTS
                                                                      FROM
                                      2004           2003          INCEPTION
                                --------------   ------------    -------------
Income
Interest income                    $        -     $        -      $    66,465
                                --------------   ------------    -------------

Total Income                                -              -           66,465

Expenses
Research and Development costs              -              -          876,771
Licensing fees-stockholder and
affiliate                                   -              -           57,260
General and administrative
expenses                               26,168         29,637        2,922,588
Interest expense-stockholder
and affiliate                          35,266         31,041          832,398
                                --------------   ------------    -------------
Total Expenses                        (61,434)       (60,678)      (4,689,017)
                                --------------   ------------    -------------

Net loss                           $  (61,434)    $  (60,678)     $(4,622,552)
                                --------------   ------------    -------------

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

Weighted average number of
common shares out standing          80,153,434     79,953,434      80,153,434
                                --------------   ------------    -------------






    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)
       THREE MONTHS ENDED OCTOBER 31, 2004 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, 2004         80,153,434    $ 8,016    $ 2,547,431     $ (4,561,118)    $(2,005,671)
Net loss for the three
months ended 10/31/2004                                                     (61,434)        (61,434)
                             -----------    -------    -----------     ------------     ------------
                              80,153,434    $ 8,016    $ 2,547,431     $ (4,622,552)    $(2,067,105)
                             -----------    -------    -----------     ------------     ------------


</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
                  THREE MONTHS ENDED OCTOBER 31, 2004 AND 2003
                    CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDTIED)
<TABLE>
<CAPTION>

                                                                                                 Cumulative
                                                           2004                2003            from Inception
                                                      ------------------------------------     --------------
<S>                                                   <C>                  <C>                   <C>
Operating activities:
Net Loss                                                $ (61,434)          $ (60,678)            $(4,622,552)
Adjustments to reconcile net loss to net cash used
  in operating activities:
Depreciaiton and Amortization                               2,083               2,083                 220,908
Expenses paid through issuance of common stock by:
    Company                                                     -                   -                 529,785
    Principal Stockholder                                       -                   -                 220,900
Changes in operating assets and liabilities:
     Loan Receivable                                                                                   (2,000)
    Accounts Payable  Accrued Expenses                    (78,678)            (73,207)                219,594
                                                      --------------------------------------------------------
Net cash used in operating activities                    (138,029)           (131,802)             (3,433,365)
                                                      --------------------------------------------------------

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               $138,199            $124,697              $2,016,972
    Principal payments                                          -                   -                (126,667)
    Proceeds from the issuance of common stock (net)            -                   -               1,804,760
                                                      --------------------------------------------------------
Net cash provided by financing activities                 138,199             124,697               3,695,065
                                                      --------------------------------------------------------
Net increase (decrease) in cash and cash equivalents          170              (7,105)                  1,203
Cash and cash equivalents, beginning of period              1,033               8,252                       -
                                                      --------------------------------------------------------
Cash and cash equivalents, end of period                 $  1,203            $  1,147              $    1,203
                                                      --------------------------------------------------------
 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
                          NOTES TO FINANCIAL STATEMENTS
                            October 31, 2004 and 2003

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, 2004.

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 will be licensed to the
Company, 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 intends to continue research and development on the
Klenz-Safe product and hydrogen technology during the ensuing 12-month period.
Funding will be provided through loans from the Chairman of the Company, at his
sole discretion. The Company does not intend to continue its research and
development efforts with respect to its rotary engine during the next 12-month
period unless 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 October 31, 2004, the
Company had not been able to commercially utilize its engine technology or
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 $2,067,105 as of October
31, 2004 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 October 31, 2004. The limited amount of liquid resources available
at October 31, 2004, 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>

The Company plans to continue research and development activities on at least a
limited basis through the twelve-month period subsequent to October 31, 2004.
However, management believes that, the net liquid assets available at October
31, 2004 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.

Management believes that continuation of the Company as a going concern during
the twelve-month period subsequent to October 31, 2004 and thereafter will
depend upon the Company's ability to obtain sufficient additional working
capital to fund research and development activities on its Klenz-Safe and
hydrogen technologies 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 exercise of a
substantial portion of the 15,398,000 outstanding Class B warrants prior to
their proposed expiration on March 11, 2005, 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 exercise of outstanding warrants was
         antidilutive and, accordingly, not included in the computation of net
         loss per share.

                                       9

<PAGE>

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, 2004
         Form 10-KSB

NOTE 4 - STOCKHOLDER'S EQUITY:

         Information as to stockholders' equity is set forth in the financial
         statements in the July 31, 2004 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 October13,1987 through
October 31,2004 of $4,622,552. Our revenues from our inception on October13,1987
through October31,2004 aggregating $66,465 were derived from interest earned.
Interest income was zero in the periods ended October 31, 2004 and October 2003
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
$876,771. Research and development costs were $0 in the quarters ended October
31, 2004 and October 31, 2003. We have had to reduce substantially our research
and development activities due to liquidity problems.

Our cumulative loss from inception includes general and administrative expenses
of $2,922,588. General and administrative expenses decreased to $26,168 in the
quarter ending October 31, 2004 from $29,637 in the quarter ending October 31,
2003, or a 12% decrease. Decreased general and administrative expenses can be
attributed to decreased legal and other professional expenses.

                                       10

<PAGE>

Our cumulative loss from inception also includes past licensing fees of $0
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 $832,398 on
promissory notes payable to our principal stockholder and chairman. Interest
expense increased to $35,266 or a 14% increase in the quarter ending October
31,2004 from $31,041 in the quarter ending October 31,2003, primarily as a
result of increased loans to us by our chairman and principal stockholder.

Our net loss of $61,434 in the period ended October 31, 2004 increased by $756,
or 1.0%, over the net loss of $60,678 at October 31, 2003. Decreases in general
and administrative costs caused the overall decrease.


LIQUIDITY AND CAPITAL RESOURCES

At October 31, 2004, we had cash and short-term investments totaling
$1,203(compared to liquid assets of $1,033 at July 31, 2004), a working capital
increase of $170 (compared with a working capital decrease of $7,219 at July 31,
2004) and a total stockholders' deficiency of $2,067,105 (compared to a
deficiency of $2,005,671 at July 31, 2004). The stockholders' deficiency
increased due to the net loss of $61,434 incurred in the first quarter ended
October 31, 2004.

At October 31, 2004, we had current liabilities in excess of current assets of
$32,994. 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 October 31, 2004 as well as July 31, 2004 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 October 31, 2004. Cash flows used by operating
activities were $138,029 and $131,802 in the quarters ended October 31,2004 and
October 31,2003, respectively. The limited amount of liquid resources available
at October 31, 2004,and our inability to generate operating revenues and cash
flows ,raise substantial doubts about our ability to continue as a going
concern.


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 will manufacture the cleaning solution and supply it to
our customers. Foster-Campo will then invoice us for their cost of doing so
without any profit to Foster-Campo. Foster-Campo will receive a royalty payment
of 50% of our net profit on sales of the proprietary

                                       11
<PAGE>

solution to our customers. Calculation of our net profit will 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, agreed to conduct 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 most recent fiscal year, 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 currently attempting
to form a business relationship with one of more third parties that may assist
us in funding the cost of such testing; however, we are not able to provide any
assurances that we will be able to enter into such a business relationship. 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.

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;


                                       12
<PAGE>

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;

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;

o     Flue and combustion gas scrubbing.

We are currently attempting to form a business relationship with one of more
third parties that may assist us in funding the cost of further testing of
Klenz-Safe's ability to remove contaminants from building air on a cost
effective basis; however, we are not able to provide any assurances that we will
be able to enter into such a business relationship. 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.

We are also presently continuing to demonstrate Klenz-Safe to potential
end-user customers. At such customers' request, we are performing further tests
on Klenz-Safe to determine its ability to meet the particular intended
applications of such customers.

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.

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 with the PTO application. In February 2004 we
filed a non-provisional patent application relating to Klenz-Safe. However, we
cannot provide any assurances that the PTO will grant a patent on our Klenz-Safe
technology.

                                       13
<PAGE>

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 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. The Company intends to file such Assignment with the PTO as soon as
reasonably practicable.

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. Initial results of such testing were positive, and we are
currently in negotiations to attempt to reach an agreement with a professor at
the University of Kansas to perform further testing on our PGH Technology. We

                                       14
<PAGE>


are unable to provide any assurances that such agreement will be reached. During
fiscal 2004, we spent approximately $4,500 on research relating to the PGH
Technology Funding for such research was provided by loans from our Chairman.

POTENTIAL MARKETS FOR COMPANY'S PRODUCTS

We believe that potential markets for Klenz-Safe include the chemical
production, manufacturing, food processing, pharmaceutical production and indoor
air quality control industries. Potential markets for the Company's hydrogen
technology include residential and commercial heating systems and electric and
hybrid fuel cell powered vehicles.

Markets that may be available for the Rotorcam Engine include off-road terrain
equipment, such as earth-moving farm equipment, tanks, pony engines, marine
engines, generators, and co-generation systems that are used to cool, as well as
to provide an electrical power source for, home and industry.

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

As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and the with the participation of the
Company's management, including the Company's Chief Executive Officer and its
Chief Financial 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, the Company's Chief Executive Officer
and its Chief Financial Officer concluded that the Company's disclosure controls
and procedures are effective in enabling the Company to record, process,
summarize and report information required to be included in the Company's
periodic SEC filings within the required time period.

There have been no significant changes in our internal controls or in other
factors that could significantly affect these controls subsequent to the
Evaluation Date.

                                       15
<PAGE>

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities and Use of Proceeds

In October 2004, we approved the issuance of 1 million shares of our Common
Stock to Mr. John Bryne as consideration for consulting services rendered by Mr.
Bryne since October 2003 and to be rendered through September 2005. Such shares
will be issued to Mr. Bryne prior to December 31, 2004 and will be issued
without registration pursuant to Section 4 (2) of the Securities Act of 1933.
They will therefore be "restricted" securities, which may not be resold or
otherwise transferred without registration under the securities laws or pursuant
to an exemption from such registration requirements.

Item 3.  Defaults upon Senior Securities

We issued a promissory note to Mr. Campo, dated August 1, 2004, in the amount of
$1,876,014, which consolidated amounts we owed to Mr. Campo under our prior
notes. The August 1, 2004 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 1,2005.

We have defaulted on our quarterly interest payment due on November 1,2004. As
of October 31, 2004, a total of $35,266 in unpaid interest was owed to Mr.
Campo under the August 1, 2004 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, 2004 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, 2004 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.

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

         (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


                                       16
<PAGE>


         (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




                                       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
                                   ----------------------------
                                   Dwight Foster
                                   Chief Executive Officer

                              Dated:  December 13, 2004


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

                              Dated:  December 13, 2004


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 /  Frank Pecorella
                                   Frank Pecorella, Director


                                   Dated:  December 13, 2004

                                       18