----

**AMERICAN        METAL & TECHNOLOGY, INC.**

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

|   | 633                  W. 5th                  Street, 26th                  FloorLos                  Angeles, CA 90071 |   |
|--------|------------------------------------------------------------------------------------------------------------------------|--------|
|   |                    (Address of principal executive offices) (Zip Code)                                            |   |
|   |                                                                                                                   |   |
|   |                    Registrant's telephone number, including area code: (213)                  223-2339            |   |
|   | Murray                  United Development Corp.                                                                  |   |
|   |  P.O.                  Box 669, Huntington, New York 11743                                                        |   |
|   |                    (Former Name, Former Address, if changed since last                  report)                   |   |

----

|                                 |                    PART I FINANCIAL INFORMATION                                   |                           |
|--------------------------------------|----------------------------------------------------------------------------------------|--------------------------------|
|                                 |                                                                                   |                           |
|  Item                  Number   |                                                                                   |  Page                     |
|                                 |                                                                                   |                           |
|  Item                  1.       |  Financial                  Statements                                       |  3                        |
|                                 |                                                                                   |                           |
|                                 |  Balance                  Sheet                                                   |  3                        |
|                                 |                                                                                   |                           |
|                                 |  Statements                  of Operations                                        |  4                        |
|                                 |                                                                                   |                           |
|                                 |  Statements                  of Stockholders’ Deficiency                    |  5-8                      |
|                                 |                                                                                   |                           |
|                                 |  Statements                  of Cash Flow                                         |  9                        |
|                                 |                                                                                   |                           |
|                                 |  Notes                  to Financial Statements                                   |  10                  - 15 |
|                                 |                                                                                   |                           |
|  Item                  2.  |  Management’s                  Discussion and Analysis Or Plan of Operation | 16                             |
|                                 |                                                                                   |                           |
|  Item                  3.       |  Controls                  and Procedures                                         |  18                       |
|                                 |                                                                                   |                           |
|                                 |  PART                  II OTHER INFORMATION                                       |  19                       |
|                                 |                                                                                   |                           |
|  Item                  1.       |  Legal                  Proceedings                                               |  19                       |
|                                 |                                                                                   |                           |
|  Item                  2.       |  Changes                  in Securities and Use of Proceeds                       |  19                       |
|                                 |                                                                                   |                           |
|  Item                  3.       |  Defaults                  upon Senior Securities                                 |  19                       |
|                                 |                                                                                   |                           |
|  Item                  4.       |  Submission                  of Matters to a Vote of Security Holders             |  19                       |
|                                 |                                                                                   |                           |
|  Item                  5.       |  Other                  Information                                               |  19                       |
|                                 |                                                                                   |                           |
|  Item                  6.       |  Exhibits                  and Reports on Form 8-K                                |  20                       |
|                                 |                                                                                   |                           |
|                                 |  Signatures                                                                       |  21                       |

----

|  AMERICAN                    METAL & TECHNOLOGY, INC.                                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (FORMERLY                    MURRAY UNITED DEVELOPMENT CORPORATION)                                                                                                     |
| (A                    Company in the Development Stage)                                                                                                                 |
| BALANCE                    SHEET                                                                                                                                        |
| APRIL                    30, 2007                                                                                                                                       |
| (UNAUDITED)                                                                                                                                                             |
|                                                                                                                                                                    |   |   |   |   |
| ** ****ASSETS**                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |
| Current                    assets:                                                                                                                                      |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |
| Cash                    and cash equivalents                                                                                                                            |   | $ | 710 |   |
| Loan                    receivable                                                                                                                                      |   |   | 2,000 |   |
|                                                                                                                                                                    |   |   |   |   |
| Advance                    payments                                                                                                                                     |   |   | 200,000 |   |
|                                                                                                                                                                    |   |   |   |   |
| Total                    assets                                                                                                                                         |   | $ | 202,710 |   |
|                                                                                                                                                                    |   |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' DEFICIENCY**                                                                                                         |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |
| Current                    liabilities:                                                                                                                                 |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |
| Accounts                    payable and accrued expenses                                                                                                                |   | $ | 108,643 |   |
| Accrued                    interest payable - related party                                                                                                             |   |   | 150,134 |   |
| Notes                    payable - related party                                                                                                                        |   |   | 882,978 |   |
| Accrued                    compensation                                                                                                                                 |   |   | 148,128 |   |
| Total                    current liabilities                                                                                                                            |   |   | 1,289,883 |   |
|                                                                                                                                                                    |   |   |   |   |
| Stockholders'                    deficiency:                                                                                                                            |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |
| Preferred                    Stock, par value $0.0001, authorized 100,000,000 shares; none                    issued and                    outstanding                 |   |   | - |   |
| Common                    Stock, par value $.0001, Authorized 200,000,000 shares, issued                    and                    outstanding  193,253,434 shares |   |   | 19,326 |   |
| Additional                    paid-in capital                                                                                                                           |   |   | 3,430,521 |   |
| Deficit                    accumulated in the development stage                                                                                                         |   |   | (4,537,020 | ) |
| Total                    stockholders' deficiency                                                                                                                       |   |   | (1,087,173 | ) |
|                                                                                                                                                                    |   |   |   |   |
| Total                    Liabilities and Stockholders’ Deficiency                                                                                                 |   | $ | 202,710 |   |
|                                                                                                                                                                    |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |

----

| AMERICAN                    METAL & TECHNOLOGY, INC.                                                       |
|----------------------------------------------------------------------------------------------------------------|
| (FORMERLY                    MURRAY UNITED DEVELOPMENT CORPORATION)                                            |
| (A                    Company in the Development Stage)                                                        |
| STATEMENTS                    OF OPERATIONS                                                                    |
| FOR                    THE THREE MONTHS AND NINE MONTHS ENDED APRIL 30, 2007 AND                    2006       |
| AND                    THE PERIOD FROM OCTOBER 13, 1987 (INCEPTION) TO APRIL 30,                    2007       |
| (UNAUDITED)                                                                                                    |
|                                                                                                           |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | THE                    PERIOD FROM   |   |
|                                                                                                           |   |   | THREE                    MONTHS  |   |   | NINE                    MONTHS |   |   | OCTOBER                    13, 1987 |   |
|                                                                                                      |   |   | FOR                    THE THREE MONTHS ENDED  |   |   | FOR                    THE NINE MONTHS ENDED |   |   | (INCEPTION)                    TO |   |
|                                                                                                           |   |   | APRIL                    30,  |   |   | APRIL                    30, |   |   | APRIL                    30, |   |
|                                                                                                           |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |
| Income                                                                                                         |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research                    and development costs                                                              |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 876,771 |   |
| Licensing                    fees-stockholder and affiliate                                                    |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 57,260 |   |
| General                    and administrative expenses                                                         |   |   | 35,243 |   |   | 10,393 |   |   | 97,303 |   |   | 65,529 |   |   | 3,211,666 |   |
| Interest                    expense-stockholder and affiliate                                                  |   |   | 16,148 |   |   | 15,590 |   |   | 49,450 |   |   | 84,835 |   |   | 1,090,288 |   |
| Total                    expenses                                                                              |   |   | 51,391 |   |   | 25,983 |   |   | 146,753 |   |   | 150,364 |   |   | 5,235,985 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                    from operations                                                                        |   |   | (51,391 | ) |   | (25,983 | ) |   | (146,753 | ) |   | (150,364 | ) |   | (5,235,985 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                    Income                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                    income                                                                             |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 66,465 |   |
| Debt                    forgiveness                                                                            |   |   | - |   |   | - |   |   | - |   |   | 632,500 |   |   | 632,500 |   |
| Total                    Other Income                                                                          |   |   | - |   |   | - |   |   | - |   |   | 632,500 |   |   | 698,965 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income (Loss)                                                                           |   | $ | (51,391 | ) | $ | (25,983 | ) | $ | (146,753 | ) | $ | 482,136 |   | $ | (4,537,020 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income (loss) per common share                                                          |   | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.00 |   | $ | (0.02 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                    average number of common shares outstanding, basic and                    diluted  |   |   | 193,253,434 |   |   | 173,253,434 |   |   | 180,165,199 |   |   | 124,947,045 |   |   | 193,253,434 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                    accompanying notes are an integral part of the financial                    statements. |

----

| AMERICAN                  METAL & TECHNOLOGY, INC.                                               |
|------------------------------------------------------------------------------------------------------|
| (FORMERLY                  MURRAY UNITED DEVELOPMENT CORPORATION)                                    |
| (A                  Company in the Development Stage)                                                |
| STATEMENTS                  OF STOCKHOLDERS' EQUITY (DEFICIENCY)                                     |
| FOR                  THE NINE MONTHS ENDED APRIL 30, 2007 AND 2006                                   |
| AND                  THE PERIOD FROM OCTOBER 13, 1987 (INCEPTION) TO APRIL 30,                  2007 |
| (UNAUDITED)                                                                                          |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   | Deficit  |   |   |   |   |   |   |   |
|                                                                                                 |   |   | Common  |   |   |   |   |   | Acuumulated |   |   |   |   |   |   |   |
|                                                                                                 |   |   | Stock  |   |   | Additional |   |   | in                  the |   |   | Stock |   |   |   |   |
|                                                                                                 |   |   | Number                  of  |   |   |   |   |   | Paid                  in |   |   | Developmental |   |   | Subscriptions |   |   |   |   |
|                                                                                                 |   |   | Shares  |   |   | Amounts |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Total |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  in October 1987 to                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| principal                  stockholder                                                               |   |   | 49,000,000 |   | $ | 4,900 |   | $ | - |   | $ | - |   | $ | (4,900 | ) | $ | - |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  in October 1987 for cash                                                   |   |   | 3,000,000 |   |   | 300 |   |   | 49,800 |   |   | - |   |   | (100 | ) |   | 50,000 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                  through initial public                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| offering                  of 15,000,000 units in                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                  1988 for cash at $1.05 per                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| unit,                  net of issuance cost of                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $220,900                                                                                             |   |   | 15,000,000 |   |   | 1,500 |   |   | 527,600 |   |   | - |   |   | - |   |   | 529,100 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss-1988                                                                       |   |   | - |   |   | - |   |   | - |   |   | (156,821 | ) |   | - |   |   | (156,821 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  July 31, 1988                                                              |   |   | 67,000,000 |   |   | 6,700 |   |   | 577,400 |   |   | (156,821 | ) |   | (5,000 | ) |   | 422,279 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise                  of class A warrants:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.45 per share                                                                  |   |   | 312,588 |   |   | 31 |   |   | 14,035 |   |   | - |   |   | - |   |   | 14,066 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.1 per share                                                                   |   |   | 21,000 |   |   | 2 |   |   | 2,098 |   |   | - |   |   | - |   |   | 2,100 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs                  relating to continuing registration                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                  warrants                                                                         |   |   | - |   |   | - |   |   | (29,532 | ) |   | - |   |   | - |   |   | (29,532 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassifiction                  of common stock                                                     |   |   | (333,588 | ) |   | (33 | ) |   | (16,133 | ) |   | - |   |   | - |   |   | (16,166 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss-1989                                                                       |   |   | - |   |   | - |   |   | - |   |   | (362,922 | ) |   | - |   |   | (362,922 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                  July 31, 1989                                                              |   |   | 67,000,000 |   |   | 6,700 |   |   | 547,868 |   |   | (519,743 | ) |   | (5,000 | ) |   | 29,825 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise                  of class A warrants                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.045 per share                                                                 |   |   | 5,201,205 |   |   | 520 |   |   | 233,534 |   |   | - |   |   | - |   |   | 234,054 |   |
| at                  $0.10 per share                                                                  |   |   | 409,000 |   |   | 41 |   |   | 40,859 |   |   | - |   |   | - |   |   | 40,900 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise                  of class B warrants                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at                  $0.15 per share                                                                  |   |   | 25,000 |   |   | 3 |   |   | 3,747 |   |   | - |   |   | - |   |   | 3,750 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  relating to continuing registration                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                  solicitation of warrants                                                        |   |   | - |   |   | - |   |   | (24,588 | ) |   | - |   |   | - |   |   | (24,588 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  received for stock subscription                                                |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 5,000 |   |   | 5,000 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                  of common stock                                                    |   |   | (5,635,205 | ) |   | (564 | ) |   | (278,140 | ) |   | - |   |   | - |   |   | (278,704 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charg                  for stock bonus                                                               |   |   | - |   |   | - |   |   | 40,000 |   |   | - |   |   | - |   |   | 40,000 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss-1990                                                                       |   |   | - |   |   | - |   |   | - |   |   | (422,314 | ) |   | - |   |   | (422,314 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|  Balance,                July 31, 1990 |   |   | 67,000,000 |   |   | 6,700  |   |   | 563,280 |   |   | (942,057 | )      |   | -      |   |   | (372,077 |  ) |
|---------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|---------|--------|--------|----------|--------|--------|--------|--------|--------|----------|---------|
|                                        |   |   |       |   |   |   |   |   |    |   |   |     |   |   |   |   |   |     |    |
| Sale                  of 3,297,000 shares through        |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|--------|----------|--------|
| private                  placement at $0.08 per share    |   |   | 3,297,000  |   |   | 329    |   |   | 244,871  |   |   | -          |   |   | -      |   |   | 245,200  |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Exercise                  of class A warrants            |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| at                  0.10 per share                       |   |   | 3,152,472  |   |   | 315    |   |   | 314,933  |   |   | -          |   |   | -      |   |   | 315,248  |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Exercise                  of class B warrants            |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| at                  $0.15 per share                      |   |   | 60,000     |   |   | 6      |   |   | 8,994    |   |   | -          |   |   | -      |   |   | 9,000    |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Cost                  relating to continuing             |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| registration                  of warrants                |   |   | -          |   |   | -      |   |   | (80,607  | )      |   | -          |   |   | -      |   |   | (80,607  | )      |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Reclassification                  of common stock        |   |   | (3,212,472 | )      |   | (321   | )      |   | (323,927 | )      |   | -          |   |   | -      |   |   | (324,248 | )      |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Net                  loss-1991                           |   |   | -          |   |   | -      |   |   | -        |   |   | (354,727   | )      |   | -      |   |   | (354,727 | )      |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Balance,                  July 31, 1991                  |   |   | 70,297,000 |   |   | 7,029  |   |   | 727,544  |   |   | (1,296,784 | )      |   | -      |   |   | (562,211 | )      |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Exercise                  of class A warrants            |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| at                  $0.10 per share                      |   |   | 3,779,425  |   |   | 378    |   |   | 377,565  |   |   | -          |   |   | -      |   |   | 377,943  |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Exercise                  of class B warrants            |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| at                  $0.15 per share                      |   |   | 4,000      |   |   | 1      |   |   | 599      |   |   | -          |   |   | -      |   |   | 600      |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Exercise                  of underwriters warrants       |   |   | 63,000     |   |   | 6      |   |   | 4,719    |   |   | -          |   |   | -      |   |   | 4,725    |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Costs                  relating to:                      |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Exercise                  of warrants                    |   |   | -          |   |   | -      |   |   | (33,191  | )      |   | -          |   |   | -      |   |   | (33,191  | )      |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Registration                  of privately placed shares |   |   | -          |   |   | -      |   |   | (55,496  | )      |   | -          |   |   | -      |   |   | (55,496  | )      |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Issuance                  for : compensation at          |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| $0.065                  per share                        |   |   | 50,000     |   |   | 5      |   |   | 3,245    |   |   | -          |   |   | -      |   |   | 3,250    |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Agency                  fee at $0.10 per share           |   |   | 25,000     |   |   | 2      |   |   | 2,498    |   |   | -          |   |   | -      |   |   | 2,500    |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Claim                  settlement at $0.085 per share    |   |   | 1,000      |   |   | 1      |   |   | 84       |   |   | -          |   |   | -      |   |   | 85       |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Reclassification                  of common stock        |   |   | 9,181,265  |   |   | 918    |   |   | 618,200  |   |   | -          |   |   | -      |   |   | 619,118  |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Charg                  for compensation                  |   |   | -          |   |   | -      |   |   | 180,900  |   |   | -          |   |   | -      |   |   | 180,900  |   |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |
| Net                  loss-1992                           |   |   | -          |   |   | -      |   |   | -        |   |   | (606,508   | )      |   | -      |   |   | (606,508 | )      |
|                                                     |   |   |       |   |   |   |   |   |     |   |   |       |   |   |   |   |   |     |   |

----

| Balance,                    July 31, 1992 |   |   | 83,400,690 |   |   | 8,340  |   |   | 1,826,667 |   |   | (1,903,292 | )      |   | -      |   |   | (68,285 | )      |
|-------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|-----------|--------|--------|------------|--------|--------|--------|--------|--------|---------|--------|
|                                      |   |   |       |   |   |   |   |   |      |   |   |       |   |   |   |   |   |    |   |

| Compensation                    at $ 0.065 per share |   |   | 100,000     |   |   | 10     |   |   | 6,490     |   |   | -          |   |   | -      |   |   | 6,500      |   |
|------------------------------------------------------|--------|--------|-------------|--------|--------|--------|--------|--------|-----------|--------|--------|------------|--------|--------|--------|--------|--------|------------|--------|
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Exercise                    of underwriters          |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| warrants                    at $0.075 per share      |   |   | 500,000     |   |   | 50     |   |   | 37,450    |   |   | -          |   |   | -      |   |   | 37,500     |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Exercise                    of class B warrants      |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| at                    $0.15 per share                |   |   | 13,000      |   |   | 1      |   |   | 1,949     |   |   | -          |   |   | -      |   |   | 1,950      |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Retirement                    of 8,970,300 shares    |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| of                    stock                          |   |   | (8,970,300  | )      |   | (897   | )      |   | -         |   |   | -          |   |   | -      |   |   | (897       | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss-1993                     |   |   | -           |   |   | -      |   |   | -         |   |   | (470,621   | )      |   | -      |   |   | (470,621   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                    July 31, 1993            |   |   | 75,043,390  |   |   | 7,504  |   |   | 1,872,556 |   |   | (2,373,913 | )      |   | -      |   |   | (493,853   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Prior                    period adjustment           |   |   | -           |   |   | -      |   |   | -         |   |   | 369,329    |   |   | -      |   |   | 369,329    |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss for 1994                 |   |   | -           |   |   | -      |   |   | -         |   |   | (342,783   | )      |   | -      |   |   | (342,783   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                    July 31, 1994            |   |   | 75,043,390  |   |   | 7,504  |   |   | 1,872,556 |   |   | (2,347,367 | )      |   | -      |   |   | (467,307   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                    for: compensation        |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| at                    $0.015 per share               |   |   | 2,000       |   |   | 200    |   |   | 29,800    |   |   | -          |   |   | -      |   |   | 30,000     |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss for 1995                 |   |   | -           |   |   | -      |   |   | -         |   |   | (354,155   | )      |   | -      |   |   | (354,155   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                    July 31, 1995            |   |   | 77,043,390  |   |   | 7,704  |   |   | 1,902,356 |   |   | (2,701,522 | )      |   | -      |   |   | (791,462   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                    for services             |   |   | 2,000,000   |   |   | 200    |   |   | 262,814   |   |   | -          |   |   | -      |   |   | 263,014    |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                    for services             |   |   | 340,000     |   |   | 34     |   |   | 6,766     |   |   | -          |   |   | -      |   |   | 6,800      |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Private                    placement                 |   |   | 8,182,833   |   |   | 818    |   |   | -         |   |   | -          |   |   | -      |   |   | 818        |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Retired                    shares                    |   |   | (2,055,556  | )      |   | (205   | )      |   | (92,294   | )      |   | -          |   |   | -      |   |   | (92,499    | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss for 1996                 |   |   | -           |   |   | -      |   |   | -         |   |   | (275,551   | )      |   | -      |   |   | (275,551   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                    July 31, 1996            |   |   | 85,510,667  |   |   | 8,551  |   |   | 2,079,642 |   |   | (2,977,073 | )      |   | -      |   |   | (888,880   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Vedeo                    fee                         |   |   | 200,000     |   |   | 20     |   |   | 1,980     |   |   | -          |   |   | -      |   |   | 2,000      |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Legal                    fees                        |   |   | 2,548,867   |   |   | 254    |   |   | 37,979    |   |   | -          |   |   | -      |   |   | 38,233     |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Retirement                                           |   |   | (2,548,867  | )      |   | (254   | )      |   | -         |   |   | -          |   |   | -      |   |   | (254       | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss for 1997                 |   |   | -           |   |   | -      |   |   | -         |   |   | (170,924   | )      |   | -      |   |   | (170,924   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                    July 31, 1997            |   |   | 85,710,667  |   |   | 8,571  |   |   | 2,119,601 |   |   | (3,147,997 | )      |   | -      |   |   | (1,019,825 | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Retired                    shares                    |   |   | (24,757,233 | )      |   | (2,475 | )      |   | -         |   |   | -          |   |   | -      |   |   | (2,475     | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss for 1998                 |   |   | -           |   |   | -      |   |   | -         |   |   | (96,900    | )      |   | -      |   |   | (96,900    | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                    July 31, 1998            |   |   | 60,953,434  |   |   | 6,096  |   |   | 2,119,601 |   |   | (3,244,897 | )      |   | -      |   |   | (1,119,200 | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                    for service              |   |   | 2,500,000   |   |   | 250    |   |   | 49,750    |   |   | -          |   |   | -      |   |   | 50,000     |   |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss for 1999                 |   |   | -           |   |   | -      |   |   | -         |   |   | (210,594   | )      |   | -      |   |   | (210,594   | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                    July 31, 1999            |   |   | 63,453,434  |   |   | 6,346  |   |   | 2,169,351 |   |   | (3,455,491 | )      |   | -      |   |   | (1,279,794 | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                    loss for 2000                 |   |   | -           |   |   | -      |   |   | -         |   |   | (5,053     | )      |   | -      |   |   | (5,053     | )      |
|                                                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |

----

| Balance,                      July 31, 2000                        |   |   | 63,453,434  |   |   | 6,346  |   |   | 2,169,351 |   |   | (3,460,544 | )      |   | -      |   |   | (1,284,847 | )      |
|--------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|--------|--------|-----------|--------|--------|------------|--------|--------|--------|--------|--------|------------|--------|
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      for services                         |   |   | 3,250,000   |   |   | 325    |   |   | 147,175   |   |   | -          |   |   | -      |   |   | 147,500    |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      for services                         |   |   | 2,000,000   |   |   | 200    |   |   | 99,800    |   |   | -          |   |   | -      |   |   | 100,000    |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                      loss for 2001                             |   |   | -           |   |   | -      |   |   | -         |   |   | (383,922   | )      |   | -      |   |   | (383,922   | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                      July 31, 2001                        |   |   | 68,703,434  |   |   | 6,871  |   |   | 2,416,326 |   |   | (3,844,466 | )      |   | -      |   |   | (1,421,269 | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      for debt                             |   |   | 10,000,000  |   |   | 1,000  |   |   | 74,000    |   |   | -          |   |   | -      |   |   | 75,000     |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      for services                         |   |   | 1,250,000   |   |   | 125    |   |   | 51,125    |   |   | -          |   |   | -      |   |   | 51,250     |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                      loss for 2002                             |   |   | -           |   |   | -      |   |   | -         |   |   | (247,997   | )      |   | -      |   |   | (247,997   | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                      July 31, 2002                        |   |   | 79,953,434  |   |   | 7,996  |   |   | 2,541,451 |   |   | (4,092,463 | )      |   | -      |   |   | (1,543,016 | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                      loss for 2003                             |   |   | -           |   |   | -      |   |   | -         |   |   | (215,794   | )      |   | -      |   |   | (215,794   | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                      July 31, 2003                        |   |   | 79,953,434  |   |   | 7,996  |   |   | 2,541,451 |   |   | (4,308,257 | )      |   | -      |   |   | (1,758,810 | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      for services                         |   |   | 200,000     |   |   | 20     |   |   | 5,980     |   |   | -          |   |   | -      |   |   | 6,000      |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                      loss for 2004                             |   |   | -           |   |   | -      |   |   | -         |   |   | (252,861   | )      |   | -      |   |   | (252,861   | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                      July 31, 2004                        |   |   | 80,153,434  |   |   | 8,016  |   |   | 2,547,431 |   |   | (4,561,118 | )      |   | -      |   |   | (2,005,671 | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      for services                         |   |   | 1,000,000   |   |   | 100    |   |   | 6,400     |   |   | -          |   |   | -      |   |   | 6,500      |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Officer                      compensation                          |   |   | 2,000,000   |   |   | 200    |   |   | 10,800    |   |   | -          |   |   | -      |   |   | 11,000     |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Converted                      from note payable                   |   |   | 1,000,000   |   |   | 100    |   |   | 7,400     |   |   | -          |   |   | -      |   |   | 7,500      |   |
| -                                                                  |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Not                      loss for 2005                             |   |   | -           |   |   | -      |   |   | -         |   |   | (266,882   | )      |   | -      |   |   | (266,882   | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                      July 31, 2005                        |   |   | 84,153,434  |   |   | 8,416  |   |   | 2,572,031 |   |   | 4,828,000  |   |   | -      |   |   | (2,247,553 | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      for services                         |   |   | 100,000     |   |   | 10     |   |   | 1,890     |   |   | -          |   |   | -      |   |   | 1,900      |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Converted                      from note payable -                 |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| stockholder                                                        |   |   | 89,000,000  |   |   | 8,900  |   |   | 658,600   |   |   | -          |   |   | -      |   |   | 667,500    |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                      income for 2006                           |   |   | -           |   |   | -      |   |   | -         |   |   | 437,735    |   |   | -      |   |   | 437,735    |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                      July 31, 2006                        |   |   | 173,253,434 |   |   | 17,326 |   |   | 3,232,521 |   |   | (4,390,265 | )      |   | -      |   |   | (1,140,418 | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Difference                      due to rounding                    |   |   | -           |   |   | -      |   |   | -         |   |   | (2         | )      |   | -      |   |   | (2         | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Issuance                      in January 2006 to AMTG              |   |   | 20,000,000  |   |   | 2,000  |   |   | 198,000   |   |   | -          |   |   | -      |   |   | 200,000    |   |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Net                      loss for nine months ended April 30, 2007 |   |   | -           |   |   | -      |   |   | -         |   |   | (146,753   | )      |   | -      |   |   | (146,753   | )      |
|                                                               |   |   |        |   |   |   |   |   |      |   |   |       |   |   |   |   |   |       |   |
| Balance,                      April 30, 2007                       |   |   | 193,253,434 |   | $      | 19,326 |   | $      | 3,430,521 |   | $      | (4,537,020 | )      | $      | -      |   | $      | (1,087,173 | )      |

----

| AMERICAN                    METAL & TECHNOLOGY, INC.                                                                                                  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (FORMERLY                    MURRAY UNITED DEVELOPMENT CORPORATION)                                                                                       |
| (A                    Company in the Development Stage)                                                                                                   |
| STATEMENTS                    OF CASH FLOWS                                                                                                               |
| FOR                    THE NINE MONTHS ENDED APRIL 30, 2007 AND 2006                                                                                      |
| AND                    THE PERIOD FROM OCTOBER 13, 1987 (INCEPTION) TO APRIL 30,                    2007                                                  |
| (UNAUDTIED)                                                                                                                                               |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   | THE                    PERIOD FROM   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   | OCTOBER                    13, 1987 |   |
|                                                                                                                                                      |   | FOR                    THE NINE MONTHS ENDED   |   |   | (INCEPTION)                    TO    |   |
|                                                                                                                                                      |   | APRIL                    30, |   |   | APRIL                    30,   |   |
|                                                                                                                                                      |   | 2007 |   |   | 2006 |   |   | 2007  |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM OPERATING ACTIVITIES:                                                                                                  |   |   |   |   |   |   |   |   |   |
| Net                    income (loss)                                                                                                                      | $ | (146,753 | ) | $ | 482,136 |   | $ | (4,537,020 | ) |
| Adjustments                    to reconcile net income(loss) to net cash provided by(used in)                    operating                    activities: |   |   |   |   |   |   |   |   |   |
| Depreciation                    and amortization                                                                                                          |   | - |   |   | - |   |   | 260,495 |   |
| Forgiveness                    of debt income                                                                                                             |   | - |   |   | - |   |   | (632,500 | ) |
| Expenses                    paid through issuance of common stock by:                                                                                     |   |   |   |   |   |   |   |   |   |
|                         Company                                                                                                       |   | - |   |   | 1,900 |   |   | 543,185 |   |
|                         Principal Stockholder                                                                                         |   | - |   |   | - |   |   | 220,900 |   |
| Changes                    in operating assets and liabilities:                                                                                           |   |   |   |   |   |   |   |   |   |
|                         Loan Receivable                                                                                               |   | - |   |   | - |   |   | (2,000 | ) |
|                         Accounts payable and accrued expenses                                                                         |   | 131,656 |   |   | (39,672 | ) |   | 793,029 |   |
| Net                    cash provided by (used in) operating activities                                                                                    |   | (15,097 | ) |   | 444,364 |   |   | (3,353,911 | ) |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES:                                                                                                  |   |   |   |   |   |   |   |   |   |
|                         Purchase of furniture and equipment                                                                           |   | - |   |   | - |   |   | (260,497 | ) |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVITIES:                                                                                                  |   |   |   |   |   |   |   |   |   |
|                         Note payable to stock holder: Proceeds                                                                        |   | 14,100 |   |   | 188,624 |   |   | 1,937,025 |   |
|                         Principal payments                                                                                            |   | - |   |   | (1,300,500 | ) |   | (126,667 | ) |
|                         Proceeds from the issuance of common stock (net)                                                              |   | - |   |   | 667,500 |   |   | 1,804,760 |   |
| Net                    cash provided by (used in) financing activities                                                                                    |   | 14,100 |   |   | (444,376 | ) |   | 3,615,118 |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| NET                    INCREASE(DECREASE) IN CASH & CASH EQUIVALENTS                                                                                  |   | (997 | ) |   | (12 | ) |   | 710 |   |
| CASH                    & CASH EQUIVALENTS, BEGINNING BALANCE                                                                                         |   | 1,707 |   |   | 170 |   |   | - |   |
| CASH                    & CASH EQUIVALENTS, ENDING BALANCE                                                                                            | $ | 710 |   | $ | 158 |   | $ | 710 |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Supplemental                    disclosure of cash flow data:                                                                                             |   |   |   |   |   |   |   |   |   |
| Interest                    Paid                                                                                                                          | $ | - |   | $ | - |   | $ | - |   |
| Income                    Tax Paid                                                                                                                        | $ | - |   | $ | - |   | $ | - |   |
| Non                    Cash Transaction:                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Shares                    Issued For Merger                                                                                                               |   | 20,000,000 |   |   | - |   |   | 20,000,000 |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                      The accompanying notes are an integral part of the financial                    statements.                                     |

----

**(A          Company in the Development Stage)**

**Note        1 - Organization and Business and Basis of Presentation** 

----

**(A          Company in the Development Stage)**

**Note        2 - Summary of other significant accounting policies**

* *
* *

----

**(A          Company in the Development Stage)**

**Note        2 - Summary of other significant accounting policies -        continued**

*The        Fair Value Option for Financial Assets and Financial        Liabilities*

|   | a. | A                  brief description of the provisions of this Statement |
|--------|----|--------------------------------------------------------------------------|

|   | b. | The                  date that adoption is required |
|--------|----|-----------------------------------------------------|

|   | c. | The                  date the employer plans to adopt the recognition provisions of                  this                  Statement, if earlier. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

**(A          Company in the Development Stage)**

**Note        2 - Summary of other significant accounting policies -        continued**

**Note        3 - Notes payable (related party) and accrued interest**

**Note        4 - Stockholders’ equity**

**Common        Stock**

**Note        5 - Options and warrants **

|                                         |   | **Options****Outstanding** |      | **Weighted                  Average Exercise Price** |   | **Aggregate****Intrinsic                  Value** |   |
|----------------------------------------------|--------|----------------------------|-----------|------------------------------------------------------|--------|---------------------------------------------------|--------|
| Outstanding                  August 1, 2006  |   |                       | 6,000,000 |                                                 | $      | 0.02                                              |   | $ | 0 |   |
| Reclassified                  from warrants  |   |                       | -         |                                                 |   | -                                                 |   |   | -  |   |
| Granted                                      |   |                       | -         |                                                 |   | -                                                 |   |   | -  |   |
| Forfeited/Canceled                           |   |                       | -         |                                                 |   | -                                                 |   |   | -  |   |
| Exercised                                    |   |                       | -         |                                                 |   | -                                                 |   |   | -  |   |
| Outstanding,                  April 30, 2007 |   |                       | 6,000,000 |                                                 | $      | 0.02                                              |   | $ | 0 |   |

----

**(A          Company in the Development Stage)**

**Note        5 - Options and warrants -        continued**

| Outstanding                  Options |   |   |      | Exercisable                  Options                                 |   |
|--------------------------------------|--------|--------|-----------|----------------------------------------------------------------------|--------|
|                                 |   |   |      |                                                                 |   |
| ExercisePrice                        |   | Number |      | Average                  Remaining Contractual                  Life |   | Average Exercise                  Price |   | Number |   | Average                  Exercise                  Price |   |
|                                 |   |   |      |                                                                 |   |   |   |   |   |   |   |
| $0.02                                |   |   | 6,000,000 |                                                                 |   | 5 |   | $ | 0,02 |   |   | 6,000,000 |   | $ | 0.02 |   |

|                                                 |   |   | **Warrants**** ****outstanding **  |   |   | **Weighted                  Average Exercise Price** |   |   | **Aggregate****Intrinsic                  Value** |   |
|------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| Outstanding,                  August 1, 2006         |   |   | 15,398,000                                        |   | $      | 0.15                                                 |   | $      | 0                                                 |   |
| Transferred                  to options              |   |   | -                                                 |   |   | -                                                    |   |   | -                                                 |   |
| Granted                                              |   |   | -                                                 |   |   | -                                                    |   |   | -                                                 |   |
| Forfeited/Canceled                  (March 12, 2007) |   |   | 15,398,000                                        |   | $      | 0.15                                                 |   |   | -                                                 |   |
| Exercised                                            |   |   | -                                                 |   |   | -                                                    |   |   | -                                                 |   |
| Outstanding,                  April 30, 2007         |   |   | -                                                 |   | $      | -                                                    |   | $      | 0                                                 |   |

**Note        6 - Business combination **

**Closing        of Stock Purchase Agreement **

----

**(A            Company in the Development Stage)**

**Note        6 - Business combination  - continued**

**Pro        Forma Combined Statement of Operation**

| **Statement                  of Operation Pro Forma:**                        |
|-------------------------------------------------------------------------------|
|                                                                          |   |   | Nine                  Months Ended  |   |   | Nine                  Months Ended  |   |
|                                                                          |   |   | April                  30, 2007  |   |   | April                  30, 2006 |   |
|                                                                          |   |   |  |   |   |  |   |
| Revenues                                                                      |   | $ | 6,434,156 |   | $ | 4,831,329 |   |
| Cost                  of Sales                                                |   |   | 4,543,212 |   |   | 3,484,893 |   |
| Gross                  Profit                                                 |   |   | 1,890,944 |   |   | 1,346,436 |   |
|                                                                          |   |   |  |   |   |  |   |
| Operating                  Expenses                                           |   |   | 585,194 |   |   | 288,991 |   |
| Income                  (loss) from operations                                |   |   | 1,305,750 |   |   | 1,057,445 |   |
| Other                  income (expenses)                                      |   |   | - |   |   | - |   |
|                                                                          |   |   |  |   |   |  |   |
| Net                  Income (loss) before income taxes                        |   |   | 1,305,750 |   |   | 1,057,445 |   |
| Provision                  for income taxesNet                  Income (loss) |   | $ | 1,305,750 |   | $ | 1,057,445 |   |
| Earnings                  Per Share:                                          |   |   |  |   |   |  |   |
| Basic                  and diluted                                            |   | $ | 0.001 |   | $ | 0.001 |   |
| Weighted                  average number of shares outstanding                |   |   | 1,402,547,997 |   |   | 1,417,945,997 |   |

----

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

**RESULTS        OF OPERATIONS**

**LIQUIDITY        AND CAPITAL RESOURCES**

----

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF        OPERATION - continued **

**PLAN        OF OPERATION**

**Our        Business**

**Our        Strategies**

----

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF        OPERATION - continued**

**ITEM        3. CONTROLS AND PROCEDURES**

----

**PART        II - OTHER INFORMATION**

**Item        1. Legal Proceedings - None**

**Item        2. Changes in Securities and Use of Proceeds**

**Item        3. Defaults upon Senior Securities - None.**

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

No        matters were submitted to a vote of stockholders during the quarter ended        April        30, 2007.

**Item        5. Other Information:**

----

**Item        5. Other Information - continued**

**Item        6. Exhibits and Reports on Form 8-K**

| Number | Description |
|--------|-------------|

| 31.1 | Certification                  of Chief Executive Officer and Principal Financial Officer in accordance                  with 18 U.S.C. Section 1350, as adopted by Section 302 of the                  Sarbanes-Oxley Act of 2002 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                      of Chief Executive Officer and Principal Financial Officer                      in accordance                      with 18 U.S.C. Section 1350, as adopted by Section 302 of the                      Sarbanes-Oxley Act of                      2002 |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 99.1 | Press                      Release dated June 15, 2007 |
|------|--------------------------------------------------------|

| 99.2 | Press                  Release dated June 19, 2007 |
|------|----------------------------------------------------|

(B)        Reports on Form 8-K

----

**SIGNATURES**

|                                      |                                                                           |                                 |
|-------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------|
|                                 |                                                                      |                            |
| Date: June                  19, 2007 | By:                                                                  | */s/ Chen                  Gao* |
|                                      | Chen                  Gao                                                      |
|                                      | Title:                  President                  and Chief Executive Officer |

----