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, 2002

                                       or

/ / TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934For 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 ____
    ----------

78,703,434 shares of the registrant's Common Stock ,$.0001 par value per share,
were outstanding as of June 11, 2002.






<PAGE>


                      MURRAY UNITED DEVELOPMENT CORPORATION

                                TABLE OF CONTENTS
                                   FORM 10-QSB

                          PART 1 FINANCIAL INFORMATION



Item Number                                                         Page

Item1.              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                            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
<TABLE>
<CAPTION>
<S>                                                   <C>                         <C>

                                            April 30,2002               July 31, 2001

Current assets

Cash & cash equivalents                               $ 1,880                     $ 2,270
Loans Receivable                                        2,000                       2,000
                                         ---------------------      ----------------------

Total current assets                                  $ 3,880                     $ 4,270


Furniture & equipment, at cost,net
of accumulated depreciation                            60,419                     66,669
                                         ---------------------      ----------------------

Total Assets                                         $ 64,299                    $ 70,939
                                         =====================      ======================



</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>
<S>                                                                                   <C>                       <C>

                                                                            April 30,2002              July 31, 2001

Current liabilities:
     Accounts payable and Accrued Expenses                                         $ 16,432                  $ 6,518
                                                                    -----------------------      -------------------


    Total current liabilities                                                        16,432                    6,518

Other liabilities:
     Accrued Interest Payable                                                        74,949                   90,943
     Notes payable-other stockholder                                              1,326,521                1,246,619
     Accrued Compensation                                                           148,128                  148,128
                                                                    -----------------------      -------------------

    Total other liabilities                                                       1,549,598                1,485,690
                                                                    -----------------------      -------------------
    Total liabilities                                                             1,566,030                1,492,208
                                                                    -----------------------      -------------------


Stockholders' deficiency:

Common Stock, par value $.0001:
     Authorized 200,000,000 shares;
     issued and outstanding
78,703,434 shares and 68,703,434                                                      7,871                    6,871
Additional paid-in capital                                                        2,490,326                2,416,326
Deficit accumulated in the development stage                                     (3,999,928)              (3,844,466)
                                                                    -----------------------      -------------------

     Total stockholders' deficiency                                              (1,501,731)              (1,421,269)
                                                                    -----------------------      -------------------

     Total Liabilities and Stockholders' Deficiency                                   $ 64,299                 $ 70,939
                                                                    =======================      ===================







</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, 2002 AND 2001
                  AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
<S>                                                  <C>               <C>               <C>

                                                                                      CUMULATIVE
                                                                                        AMOUNTS
                                                                                         FROM
                                                   2002               2001             INCEPTION
Income
Interest income                                      $ -                 $ -             $ 66,465
                                            ---------------   ----------------      -------------

Total Income                                           -                  -                66,465

Expenses
Research and Development costs                       14,063               -                868,716
Licensing fees-stockholder and affiliate               -                  -                 57,260
General and administrative expenses                  66,450            201,510           2,696,702
Interest expense-stockholder and affiliate           74,949             67,813             443,715
                                             ---------------   ----------------     ---------------
Total Expenses                                     (155,462)          (269,323)         (4,066,393)
                                             ---------------   ----------------     ---------------

Net loss                                         $ (155,462)        $ (269,323)       $ (3,999,928)
                                             ---------------   ----------------     ---------------

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

Weighted average number of
common shares outs                               70,095,375         64,413,706           78,703,434
                                             ---------------   ----------------      --------------
</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, 2002 AND 2001
                                   (UNAUDITED)
<TABLE>
<CAPTION>
<S>                                                                      <C>               <C>


                                                                         2002               2001

Interest income                                                          $ -                $ -
Research and Development costs                                            5,025
Licensing fees- stockholder and affiliate                                  -                  -
General and administrative expenses                                      13,827            158,142
Interest expense- stockholder and affiliate                              24,191             22,907
                                                                  -------------      --------------
Total                                                                   (43,043)          (181,049)
                                                                  --------------     -------------
Net loss                                                              $ (43,043)         $(181,049)
                                                                  --------------     --------------

Net loss per common share                                          $       (nil)       $      (nil)
</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 STOCKHOLDERS' EQUITY (DEFICIENCY)
    NINE MONTHS ENDED APRIL 30, 2002 AND CUMULATIVE AMOUNTS FROM OCTOBER 13,
                            1987 (DATE 0F INCEPTION)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
<S>                                            <C>                 <C>           <C>                   <C>                    <C>

                                                                                                 Deficit
                                                                                              Acuumulated in
                                        Common                             Additional              the
                                       Stock Number                          Paid in           Developmental
                                        of Shares         Amounts           Capital               Stage                 Total


Balance July 31, 2001                    68,703,434          $ 6,871       $ 2,416,326           $ (3,844,466)          $(1,421,269)
                                   ----------------- ----------------  ----------------   --------------------    ------------------


Issuance of common stock
for conversion of debt                   10,000,000            1,000            74,000                                       75,000
                                   ----------------- ----------------  ----------------   --------------------    ------------------

Net loss for the nine months
 ended April 30, 2002                                                                                (155,462)             (155,462)
                                   ----------------- ----------------  ----------------   --------------------    ------------------
Balance as of April 30,2002              78,703,434          $ 7,871       $ 2,490,326           $ (3,999,928)          $(1,501,731)
                                   ================= ================  ================   ====================    ==================

</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, 2002 AND 2001
                    CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDTIED)
<TABLE>
<CAPTION>
<S>                                                           <C>          <C>                    <C>
                                                                                          Cumulative
                                                                                            from
                                                                2002          2001        Inception
                                                          ------------- -------------- --------------
Operating activities:
Net Loss                                                      (155,462)    (269,323)      (3,999,928)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation & Amortization                                      6,250        7,631          200,079
Expenses paid through issuance of common
stock by:
    Company                                                          -            -          472,537
    Principal Stockholder                                            -      138,125          220,900
Changes in operating assets and liabilities:
Loans Receivabe                                                      -            -           (2,000)
Accounts Payable and  Accrued Expenses                           6,080      (56,225)         239,509
                                                          -------------- ------------- --------------
Net cash used in operating activities                         (155,292)    (179,792)      (2,868,903)
                                                          -------------- ------------- --------------

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                    $154,902     $170,794       $1,453,187
    Principal payments                                         (75,000)           -         (126,667)
Proceeds from the issuance of common stock(net)                 75,000            -        1,804,760
                                                          -------------- ------------- --------------
Net cash provided by financing activities                      154,902      170,794        3,131,280
                                                          -------------- ------------- --------------
Net increase (decrease) in cash and cash equivalents              (390)      (8,998)           1,880
Cash and cash equivalents, beginning of period                   2,270        9,796                -
                                                          -------------- ------------- --------------
Cash and cash equivalents, end of period                       $ 1,880        $ 798          $ 1,880
                                                          -------------- ------------- --------------
 Supplemental disclosure of cash flow data:
  Interest Paid                                                $ -            $ -            $ 32,420
                                                          -------------- ------------- --------------
</TABLE>

                                        7


<PAGE>



                          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,
2002 and its results of operations and cash flows for the six months ended April
30, 2002. These unaudited condensed financial statements should be read in
conjunction with the financial statements and other information in the July 31,
2001 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
were 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;and 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. The proprietary cleaning
solution, for which we have applied for 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 during the ensuing 12-month period.
Funding will be provided through loans from the Chairman of the Company, at his
sole discretion. In addition, the Company intends to continue its research and
development efforts with respect to its rotary engine during the next 12-month
period, provided 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, 2002, the
Company had not been able to commercially utilize its engine or Klenz-Safe
technologies 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 $1,501,731 as of April 30,
2002 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, 2002. The limited amount of liquid resources available
at April 30, 2002 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):

Management believes that continuation of the Company as a going concern during
the twelve-month period subsequent to April 30, 2002 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 rotary engine
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 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>



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, 2001
         Form 10-KSB

Note 4 - Stockholder's Equity:

         Information as to stockholders' equity is set forth in the financial
         statements in the July 31, 2001 Form 10-KSB.











                                       10


<PAGE>


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 company that commenced operations on October 13,
1987. We are attempting to exploit commercially certain technologies that we are
in the process of developing. One of such technologies is a proprietary cleaning
solution owned by Foster-Campo Corp.("Foster-Campo"), a New York corporation
owned and operated by Mr. Anthony Campo and Mr. Dwight Foster, the Chairman of
the Board and the Chief Executive Officer, respectively, of the Company. We have
reached an agreement in principle with Foster-Campo under which we will license
the right to use Foster-Campo's proprietary solution solely for removing
environmental pollutants from flue gases and pollutants and contaminants from
building air. We are also attempting to develop the Rotorcam Engine, a rotary
internal combustion engine that provides significant advantages over
conventional reciprocating engines

         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, 2002 of $3,999,928.

Results Of Operations

Our revenues from our inception on October 13, 1987 through April 30, 2002
aggregating $66,465 were derived from interest earned. Interest income was zero
in the periods ended April 30 , 2002 and April 30,2001 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
$868,716. Research and development costs were $5,025 during the quarters ended
April 30, 2002 and April 30,2001. We have had to reduce substantially our
research and development activities due to liquidity problems.

                                       11


<PAGE>

Our cumulative loss from inception includes general and administrative expenses
of $2,696,702. General and administrative expenses decreased to $66,450 in
April,2002 from $201,510 in April ,2001, or a 67% decrease. Decreased general
and administrative expenses can be attributed to decreased legal and other
professional expenses.

Our cumulative loss from inception also includes past licensing fees of $0
during the quarterly period ended April 30, 2002 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 $443,715 on
promissory notes payable to our principal stockholder and Chairman. Interest
expense increased to $74,949 as of April 30, 2002 from $67,813 in April 2001, or
an 11% increase primarily as a result of increased loans to us by our Chairman
and principal stockholder.

Our net loss of $155,462 in the period ended April, 2002 decreased by $113,861,
or 42%, over the net loss of $269,323 in April 30 , 2001. Decreases in general
and administrative costs and interest expense caused the overall increase.

Liquidity And Capital Resources

At April 30, 2002, we had cash and short-term investments totaling
$1,880(compared to liquid assets of $2,270 at July 31, 2001), a working capital
decrease of $390 (compared with a working capital increase of $7,520 at July 31,
2001) and a total stockholders' deficiency of $1,501,731(compared to a
deficiency of $1,421,269 at July 31, 2001). The stockholders' deficiency
increased due to the net loss of $155,462 incurred in the nine months ended
April 30, 2002.

At April 30, 2002, we had current liabilities in excess of current assets of
$12,552. We have not been able to commercially utilize our technologies 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, 2002 as well as July 31, 2001 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, 2002. Cash flows used by operating activities
were $155,292 and $179,792 in April,2002 and April 2001, respectively. The
limited amount of liquid resources available at April 30, 2002,and our inability
to generate operating revenues and cash flows ,raise substantial doubts about
our ability to continue as a going concern.



                                       12



<PAGE>


PLAN OF OPERATION

We are a developmental stage company that commenced operations on October 13,
1987. Our present plan is to attempt to exploit commercially certain
technologies that we are in the process of developing. 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. The license will be limited to use of the
formula to remove air pollutants from flue gases and pollutants and contaminants
from building air. Under the terms of the proposed license, Foster-Campo will
manufacture and supply the cleaning solution to our customers and will 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 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 of 98% rate throughout the testing. We are presently
negotiating with a utility company to conduct field tests in working power
generating stations to determine whether application of the liquid using our
know-how will achieve results that will provide a commercial advantage over
competing technologies. Management believes that it will be able to reach an
agreement with one or more utility companies to field test our technology
without cost to us. Such testing is expected to take 4 to 12 months to be
completed. If the field tests are successful, we intend to attempt to license
our technology to power generating plants.

We also 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. The tests simulated wet scrubber
equipment, which is a 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 has not
been previously achieved in a single operation. The following were the material
findings of the laboratory tests:

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

          Klenz-Safe captured 70% of both nitrogen dioxide and of nitrous oxide
          in tested air 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 the testing at both Penn State University and by the air quality
testing laboratory, management believes that Klenz-Safe possesses the following
environmentally beneficial attributes:

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

          Klenz-Safe is useable in scrubber devices, which are commonly used to
          remove pollutants from building air, thereby providing an existing
          viable market;

          Klenz-Safe achieves a higher starting alkalinity and has a longer
          operating life than can be obtained with commercial caustic materials
          or lime slurries; Klenz-Safe protects rather than corrodes metal
          compounds and surfaces.

                                       13
<PAGE>

Management believes that Klenz-Safe has the ability to achieve nearly complete
capture rates when contact time and pollutant capture methods are optimized.
"Pilot Scale" studies, which duplicate but are less extensive than field
studies, with a power generation facility are now being planned in order to
examine the operating parameters of Klenz-Safe prior to field tests.

We are also conducting field tests of Klenz-Safe with certain manufacturing
companies that need to eliminate or lower volatile organic compounds from their
manufacturing facilities, and we have signed a non-disclosure agreement with a
major coal burning power utility to explore a possible strategic partnership
that would develop technology to remove or eliminate sulfur from coal burning
flue gas .

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. Funding for such research was provided by loans to the
Company from our Chairman, Mr. Anthony Campo.

We have filed an application with the US Patent and Trademark Office (PTO) for
protection of the trademark, "Klenz-Safe". The method of the application of the
Klenz-Safe formula for removal of sulfur from coal burning flue gas was
developed by a consultant to the Company, who has 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.

Management believes that if we commence sale of the Klenz-Safe solution for
sulfur reduction and/or the reduction or elimination of pollutants from building
air, the cost of compliance with environmental laws will not be significant.

We cannot provide any assurances that PTO will grant a patent on our Klenz-Safe
technology. We also cannot provide any assurances that we will be able to
achieve successful commercialization of our Klenz-Safe technology.


We also intend to continue our research and development efforts on the Rotorcam
engine during the ensuing twelve month period, assuming we are able to obtain
funding for such efforts. In July 1998, principally, through the efforts of Mr.
Dwight Foster, our President and Chief Executive Officer, we were able to obtain
the services of Southwest Research Institute ("SRI") to evaluate our engine
technology. SRI is generally considered to be one of the country's foremost
independent research institutes with approximately 2,500 scientists, engineers
and support personnel. SRI conducts an average of 1,500 nationally and
internationally sponsored projects each year.

                                       14
<PAGE>

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 (3) 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.

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.

                                       15
<PAGE>

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.

Although Management previously was considering potential mergers with businesses
owned by Mr. Campo and Mr. Foster and/or third parties, it has no plans to
pursue such mergers at this time.


                                       16

<PAGE>


                           PART II - OTHER INFORMATION

Item 1.Legal Proceedings - None

Item 2. Changes in Securities and Use of Proceeds- None
On April 9, 2002, Mr. Anthony Campo, the Chairman of the Board and Executive
Vice President of the Company, exercised a right to convert $37,500 of
indebtedness owed by the Company to Mr. Campo into 5,000,000 shares of our
Common Stock. The number of shares for which Mr. Campo exercised his conversion
right was computed at a rate of $.0075 for each such share of Common Stock. Mr.
Campo's conversion right is contained in a Promissory Note dated August 1, 2001
in the principal amount of $1,337,552 issued by the Company to Mr. Campo. Under
the terms of the Promissory Note, Mr. Campo was given the right to convert all
or any portion of the unpaid principal and/or interest of the Note at a rate of
one share of Common Stock for each 3/4 of one cent of such principal and
interest converted, up to a maximum of 100,000,000 shares. The terms of such
Promissory Note are further described in our Form 10-KSB for the fiscal year
ended July 31, 2001. The shares issued to Mr. Campo are exempt from registration
pursuant to Section 4(2) of the Securities Act of 1933 and are "restricted"
securities in accordance with the terms of said Act.

Mr. Campo had previously exercised his conversion right under the August 1, 2001
Promissory Note on March 5, 2002. Under the March 5, 2002 exercise, Mr. Campo
converted $37,500 of indebtedness into 5 million shares of the Company's Common
Stock. Such shares were also exempt from registration pursuant to Section 4(2)
of the Securities Act of 1933 and are "restricted" securities in accordance with
the terms of said Act.

On April 11, 2002, the Board of Directors approved the issuance of 1 million
shares of the Company's Common Stock to Robert Vandine in consideration for
certain consulting services that Mr. Vandine had agreed to perform for the
Company. Such services included (a) research and development of methods of using
the Klenz-Safe cleaning product for reducing or eliminating pollutants from
building air; (b) research and development of other uses of the Klenz-Safe
cleaning product; (c) marketing all technologies using the Klenz-Safe cleaning
product; and (d) upon request by the Board of the Company, serving as an
executive officer of the Company for a minimum of one year. On April 30, 2002
the Board requested Mr. Vandine to serve as its President, and Mr. Vandine
assumed such position as of such date.

On April 11, 2002, the Board of Directors approved the issuance of 250,000
shares of the Company's Common Stock to Newell Dimen in consideration for
certain consulting services that Mr. Dimen had agreed to perform on behalf of
the Company. Such services included (a) research and development of methods of
using the Klenz-Safe cleaning product for reducing or eliminating pollutants
from building air; (b) research and development of other uses of the Klenz-Safe
cleaning product; and (c) marketing all technologies using the Klenz-Safe
cleaning product.

Under the consulting agreements with Mr. Vandine and Mr. Dimen, such individuals
agreed that all copyrightable works and all inventions resulting from their
services would belong to the Company and that they would assist the Company in
obtaining patents and copyrights for such inventions and copyrightable works in
all countries.

                                   17
<PAGE>

The shares issued to Mr. Vandine and Mr. Dimen were issued without registration
pursuant to Section 4(2) of the Securities Act of 1933 and are therefore
"restricted" securities.

On April 11, 2002, the Board of Directors approved the issuance of a
non-qualified stock option (the "Option") for 6 million shares of the Company's
Common Stock to Dwight Foster, the Chief Executive Officer and a Director of the
Company. In issuing such Option, the Board noted that Mr. Foster had been
serving as the Company's President and Chief Executive Officer since December
1998 and as a Director since March 2000, in each case without any compensation.

The Option is exercisable, cumulatively, at an exercise price of $0.02 per share
in accordance with the following schedule of vesting: 1 million shares on
October 11, 2002; 1 million shares on April 11, 2003; 1 million shares on
October 11, 2003; 1 million shares on April 11, 2004; 1 million shares on
October 11, 2004; and 1 million shares on April 11, 2005. From and after April
11, 2005 the Option may be exercised as to all optioned shares for which it had
not been previously exercised.

The Option expires 10 years after the date of grant. If Mr. Foster's employment
with the Company is terminated for any reason other than death, Mr. Foster may
exercise only that portion of the Option that was exercisable on the date such
employment terminated. The Option issued to Mr. Foster was issued without
registration pursuant to Section 4(2) of the Securities Act of 1933. The closing
price of the Company's Common Stock on the date the Option was granted to Mr.
Foster was $.041 per share.



Item 3. Defaults upon Senior Securities
The promissory note to Mr. Campo, dated August 1, 2001, in the amount of
$1,337,552, consolidated amounts we owed to Mr. Campo under our prior notes.
The August 1, 2001 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 1,2002. We have defaulted on our quarterly interest payment due on
November 1,2001 , February 1, 2002 and May 1, 2002. As of April 30, 2002, a
total of $74,949 in unpaid interest was owed to Mr. Campo under the August 1,
2001 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, 2001 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 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

   (10)

          a)    Option Agreement between the Company and Dwight Foster covering
                grant of option on April 11, 2002.

          b)    Consulting Agreement dated as of April 11, 2002 between the
                Company and Robert Vandine

          c)    Consulting  Agreement dated as of April 11, 2002 between the
                Company and Newell Dimen.

          d)    Assignment dated March 13, 2002 from Robert Vandine to the
                Company covering Robert Vandine's rights under provisional
                patent application no. 60/313,087 relating to process of
                employing proprietary cleaning solution to the treatment of flue
                gases.


                                       18


<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
                                    -------------------------
                                    Chief Executive Officer

                                    Dated:  June 13, 2002


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

                                     Dated: June 13, 2002

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: June 13, 2002


                                       19