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 January 31, 2005

                                       or

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

For the transition period from       to

                       Commission File Number 33-19048-NY

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

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


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

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

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

Indicate by check mark whether the Issuer:

(1) Has filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports):

Yes    x          No
    --------         --------
(2) Has been subject to such filing requirements for the past 90 days.

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

84,153,434 shares of the registrant's Common Stock ,$.0001 per share, were
outstanding as of March 14, 2005.


<PAGE>


                      MURRAY UNITED DEVELOPMENT CORPORATION

                                TABLE OF CONTENTS
                                   FORM 10-QSB



                          PART I FINANCIAL INFORMATION


   Item Number                                                           Page

   Item 1.             Financial Statements

                             Balance Sheets                                2,3

                             Statements of Operations                      4,5

                             Statements of Stockholders' Deficiency        6

                             Statements of Cash Flow                       7

                             Notes to Financial Statements                 8

   Item 2.             Management's Discussion and Analysis
                       Or Plan of Operation                                10



                       PART II OTHER INFORMATION

   Items 1- 6.                                                             16

   Signatures                                                              18

   Certifications                                                          19



<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

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



                                    January 31, 2005       July 31, 2004
                                    ----------------      ---------------
Current assets

Cash & cash equivalents                     $  9,910             $  1,033
Loan Receivable                                2,000                2,000

Total current assets                        $ 11,910             $  3,033


Furniture & equipment, at
cost,net of accumulated
depreci                                       37,504               41,671
                                            --------             --------

Total Assets                                $ 49,414             $ 44,704
                                            ========             ========




    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>

                                                                           January 31, 2005              July 31, 2004
                                                                           ----------------              -------------

<S>                                                                     <C>                          <C>
     Accounts payable and Accrued Expenses                                            $ 21,574                     $ 22,742

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

    Total current liabilities                                                           21,574                       22,742

Other liabilities:
     Accrued Interest Payable                                                           70,886                      127,399
     Notes payable-other stockholder                                                 1,926,254                    1,752,106
     Accrued Compensation                                                              148,128                      148,128
                                                                        -----------------------      -----------------------

    Total other liabilities                                                          2,145,268                    2,027,633
                                                                        -----------------------      -----------------------

    Total liabilities                                                                2,166,842                    2,050,375
                                                                        -----------------------      -----------------------


Stockholders' deficiency:

Common Stock, par value $.0001:
     Authorized 200,000,000 shares;
     issued and outstanding
   84,153,434 shares and  80,153,434                                                     8,416                        8,016
Additional paid-in capital                                                           2,566,199                    2,547,431
Deficit accumulated in the development stage                                        (4,692,043)                  (4,561,118)
                                                                        -----------------------      -----------------------

     Total stockholders' deficiency                                                 (2,117,428)                  (2,005,671)
                                                                        -----------------------      -----------------------

     Total Liabilities and Stockholders' Deficiency                                   $ 49,414                     $ 44,704
                                                                        =======================      =======================

</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 THREE MONTHS ENDED JANUARY 31, 2005 AND 2004


                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                               2005                        2004
                                               ----                        ----
<S>                                    <C>                         <C>
Income
Interest income                          $             -             $           $ -
                                         ----------------            ----------------

Total Income                                           -                           -

Expenses
Research and Development costs                         -                           -
Licensing fees-stockholder and
affiliate                                              -                           -
General and administrative
expenses                                          33,371                      28,443
Interest expense-stockholder and
affiliate                                         35,620                      31,606
                                         ----------------            ----------------
Total Expenses                                   (68,991)                    (60,049)
                                         ----------------            ----------------

Net loss                                 $       (68,991)            $       (60,049)
                                         ----------------            ----------------

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

</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
               FOR THE SIX MONTHS ENDED JANUARY 31, 2005 AND 2004
                  AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE 0F INCEPTION)
                                   (UNAUDITED)


<TABLE>
<CAPTION>

                                                                                         CUMULATIVE
                                                                                           AMOUNTS
                                                                                            FROM
                                              2005                 2004                   INCEPTION
                                              ----                 ----                   ---------
<S>                                    <C>                   <C>                      <C>
Income
Interest income                        $              -      $             -          $            66,465
                                       -----------------     ----------------         --------------------

Total Income                                          -                    -                       66,465

Expenses
Research and Development costs                        -                    -                      876,771
Licensing fees-stockholder and
affiliate                                             -                    -                       57,260
General and administrative
expenses                                         60,039               58,081                    2,956,459
Interest expense-stockholder and
affiliate                                        70,886               62,645                      868,018
                                       -----------------     ----------------         --------------------
Total Expenses                                 (130,925)            (120,726)                  (4,758,508)
                                       -----------------     ----------------         --------------------

Net loss                               $       (130,925)     $      (120,726)         $        (4,692,043)
                                       -----------------     ----------------         --------------------

Net loss per common share              $           (nil)     $           (nil)                     (0.055)

Weighted average number of
common shares out                            81,853,726           79,987,000                   84,153,434
                                       -----------------     ----------------         --------------------
</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)
          SIX MONTHS ENDED JANUARY 31, 2005 AND CUMULATIVE AMOUNTS FROM
                      OCTOBER 13, 1987 (DATE 0F INCEPTION)
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                               Common                                               Deficit
                                                Stock                           Additional       Accumulated in
                                              Number of                          Paid in       the Developmental
                                               Shares            Amounts         Capital             Stage              Total
                                            -----------       -----------      -----------       --------------     ------------
<S>                                        <C>                  <C>          <C>                <C>               <C>
Balance July 31, 2004                        80,153,434           $ 8,016      $ 2,547,431        $ (4,561,118)     $(2,005,671)

Expenses paid by Issuance of Stock
Compensation                                  3,000,000             $ 300         $ 11,368                   -         $ 11,668
Exercise of Note Conversion Rights            1,000,000               100            7,400                   -            7,500

Net loss for the six months
ended 01/31/2005                                                                                       (130,925)        (130,925)
                                            -----------        ----------      -----------        -------------      ------------
                                            $84,153,434           $ 8,416      $ 2,566,199         $ (4,692,043)     $(2,117,428)


</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
                   SIX MONTHS ENDED JANUARY 31, 2005 AND 2004
                    CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDTIED)

<TABLE>
<CAPTION>


                                                                                                   Cumulative
                                                                    2005           2004          from Inception
                                                           ------------------------------------ ---------------
<S>                                                            <C>               <C>               <C>
Operating activities:
Net Loss                                                       $ (130,925)       $(120,726)        $ (4,692,043)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciaton and Amortization                                        4,166            4,166              222,991
Expenses paid through issuance of common stock by:
    Company                                                                          6,000              523,785
    Principal Stockholder                                               -                -              220,900
Changes in operating assets and liabilities:
     Loan Receivable                                                                                     (2,000)
    Accounts Payable  Accrued Expenses                            (57,680)         (43,405)             356,789
                                                           -----------------------------------------------------
Net cash used in operating activities                            (184,439)        (165,965)          (3,369,578)
                                                           -----------------------------------------------------

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

Financing activities:
    Note payable to stockholder: Proceeds                        $181,648        $ 158,698           $1,950,224
    Principal payments                                                  -                -             (126,667)
    Proceeds from the issuance of common stock (net)               11,668                -            1,816,428
                                                           -----------------------------------------------------
Net cash provided by financing activities                         193,316          158,698            3,639,985
                                                           -----------------------------------------------------
Net increase (decrease) in cash and cash equivalents                8,877           (7,267)               9,910
Cash and cash equivalents, beginning of period                      1,033            8,252                    -
                                                           -----------------------------------------------------
Cash and cash equivalents, end of period                          $ 9,910            $ 985              $ 9,910
                                                           -----------------------------------------------------
 Supplemental disclosure of cash flow data:
  Interest Paid                                                       $ -              $ -             $ 32,420
                                                           -----------------------------------------------------

Reduction of Shareholder Loan issued for Common Stock               7,500                -                 7500

</TABLE>

                                                                   7



<PAGE>


                      Murray United Development Corporation
                          NOTES TO FINANCIAL STATEMENTS
                            January 31, 2004 and 2003


NOTE 1 - ORGANIZATION AND BUSINESS AND BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with Generally Accepted Accounting Principles for interim financial information
and pursuant to the Regulation S-B of the Rules and Regulations of the
Securities and Exchanged Commission. Certain financial information and footnote
disclosure normally included in annual financial statements prepared in
accordance with Generally Accepted Accounting Principles have been condensed or
omitted. Accordingly, the accompanying financial statements should be read in
conjunction with the Company's annual financial statements and notes thereto
included in its Form 10-KSB for the year ended July 31, 2004.

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

The Company has been in the development stage since inception. Activities of the
Company have been limited to the acquisition of funds from the sale of its
common stock; the acquisition of the licensing rights for and, subsequently,
title to, the engine technology; research and development related to the
development of an initial fuel-driven prototype of the engine that was
successfully tested on a preliminary basis in January 1990; additional testing
and development of the engine prototype to obtain performance data for the
demonstration of the engine to potential licensees; research relating to the
ability of a proprietary cleaning solution, which will be licensed to the
Company, to remove air pollutants from coal burning flue gas and certain air
pollutants and contaminants from building air, as well as other industrial uses;
and research and development relating to production of hydrogen for use in
hydrogen fuel cells. The proprietary cleaning solution, for which we have been
granted trademark protection under the name Klenz-Safe, is owned by a
corporation whose sole shareholders are Mr. Anthony Campo and Mr. Dwight Foster,
the Chairman of the Board and Chief Executive Officer of the Company,
respectively. The Company intends to continue research and development on the
Klenz-Safe product and hydrogen technology during the ensuing 12-month period.
Funding will be provided through loans from the Chairman of the Company, at his
sole discretion. The Company does not intend to continue its research and
development efforts with respect to its rotary engine during the next 12-month
period unless it is able to raise the funds necessary to conduct such research,
of which there can be no assurances.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. However, as of January 31, 2005, the
Company had not been able to commercially utilize its engine technology,
cleaning solution or hydrogen technology to generate revenues or cash flows from
operating activities. As a result, it has suffered recurring losses from
operations from inception that have generated the net stockholders' deficiency
of $2,124,928 as of January 31, 2005 and have also generated significant working
 capital deficiencies from time to time.

                                        8

<PAGE>

Management does not expect the Company to generate any significant revenues or
positive operating cash flows during the twelve-month period subsequent to
January 31, 2005. The limited amount of liquid resources available at January
31, 2005, and the inability to generate operating revenues and cash flows raise
substantial doubts about the Company's ability to continue as a going concern.

The Company plans to continue research and development activities on at least a
limited basis through the twelve-month period subsequent to January 31, 2005.
However, management believes that, the net liquid assets available at January
31, 2005 will not be sufficient to enable the Company to meet its obligations
and to continue as a going concern during the ensuing twelve-month period even
on this limited basis without limiting research and development and other
operating activities more severely unless it obtains additional debt or equity
financing and/or government sponsored research.

Management believes that continuation of the Company as a going concern during
the twelve-month period subsequent to January 31, 2005 and thereafter will
depend upon the Company's ability to obtain sufficient additional working
capital to fund research and development activities on its Klenz-Safe and
hydrogen technologies and the general and administrative expenses to be
incurred during the remaining development period. Potential sources of such
working capital include: the private or public sale of common stock, the
exercise of a substantial portion of the 15,398,000 outstanding Class B warrants
prior to their proposed expiration on March 11, 2007, 14,898,000 of which are
exercisable at $0.15 per share and 500,000 of which are exercisable at $.225 per
share; and borrowing additional amounts from related parties or other sources.
However, there can be no assurances that such financing will be available. The
accompanying financial statements do not include any adjustments that might
result from the uncertainties related to the ability of the Company to continue
as a going concern.

NOTE 2 - SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES:

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

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

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

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



                                        9


<PAGE>

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

NOTE 3 - RELATED PARTY TRANSACTIONS:

         Information as to agreements with, and notes payable to, related
         parties is set forth in the financial statements in the July 31, 2004
         Form 10-KSB

NOTE 4 - STOCKHOLDER'S EQUITY:

         Information as to stockholders' equity is set forth in the financial
         statements in the July 31, 2004 Form 10-KSB.

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

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

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


RESULTS OF OPERATIONS

We have not derived any revenues from the license or sale of our technology and
have incurred cumulative losses from our inception on October 13, 1987 through
January 31, 2005 of $4,680,375. Our revenues from our inception on October 13,
1987 through January 31, 2005 aggregating $66,465 were derived from interest
earned. Interest income was zero in the periods ended January 31, 2005 and
January 31, 2004 as a result of a lack of funds available for investment.

The cumulative loss from inception includes research and development costs of
$876,771. There were no research and development costs in the periods ended
January 31, 2005 and


                                       10

<PAGE>

January 31, 2004. We have had to reduce substantially our research and
development activities due to liquidity problems.

Our cumulative loss from inception includes general and administrative expenses
of $2,944,791. General and administrative expenses increased to $60,035 in the
period ending January 31, 2005 from $58,081 in the period ending January
31,2004, or a 3.37% increase. Increase in general and administrative expenses
can be attributed to compensation expenses issued for stock.

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

The cumulative loss from inception also includes interest expense of $868,018 on
promissory notes payable to our principal stockholder and chairman. Interest
expense increased to $70,886 in the period ending January 31, 2005 from $62,465
in the quarter ending January 31, 2004, primarily as a result of increased loans
to us by our chairman and principal stockholder.

Our net loss of $119,257 in the period ended January 31, 2005 decreased by
$1,469, or 1.2%, over the net loss of $120,726 in January 31, 2004. Decreases in
general and administrative expense caused the overall decrease.


LIQUIDITY AND CAPITAL RESOURCES

At January 31, 2005, we had cash and short-term investments totaling
$9,910(compared to liquid assets of $1,033 at July 31, 2004), a working capital
decrease of $8,877 (compared with a working capital decrease of $7,219 at July
31, 2004), and a total stockholders' deficiency of $2,124,928 (compared to a
deficiency of $2,005,671 at July 31, 2004). The stockholders' deficiency
increased due to the net loss of $119,251 incurred in the six months ended
January 31, 2005.

At January 31, 2005, we had current liabilities in excess of current assets of
$9,664. We have not been able to commercially utilize our engine, Klenz-Safe or
hydrogen technology to generate any revenue through that date, and as a result,
we have suffered recurring losses from operations from inception that have
generated the net capital deficiencies at January 31, 2005 as well as July 31,
2004 and significant working capital deficiencies from time to time. We do not
expect to generate any significant revenues or positive operating cash flows
during the twelve-month period subsequent to January 31, 2005. Cash flows used
by operating activities were $172,771 and $165,965 in the periods ended January
31, 2005 and January 31, 2004, respectively. The limited amount of liquid
resources available at January 31, 2005, and our inability to generate operating
revenues and cash flows, raise substantial doubts about our ability to continue
as a going concern.


                                       11

<PAGE>

PLAN OF OPERATION

KLENZ-SAFE CLEANING SOLUTION

In February 2002, we reached an agreement in principle with Mr. Anthony
Campo, the Chairman of the Company, and with Mr. Dwight Foster, Chief Executive
Officer of the Company, pursuant to which we would obtain a license to use and
sell a proprietary cleaning solution owned by Foster-Campo Corp.
("Foster-Campo"), a corporation owned by Mr. Foster and Mr. Campo. Under the
terms of the proposed license, Foster-Campo will manufacture the cleaning
solution and supply it to our customers. Foster-Campo will then invoice us for
their cost of doing so without any profit to Foster-Campo. Foster-Campo will
receive a royalty payment of 50% of our net profit on sales of the proprietary
solution to our customers. Calculation of our net profit will include, but not
be limited to, amounts Foster-Campo invoices us for supplying our customers with
the cleaning solution. In June 2000 Penn State Energy Institute, which is a
facility of Penn State University, agreed to conduct laboratory tests of the
application of the Klenz-Safe solution to the reduction of sulfur from coal
burning flue gas. When coal burning flue gas was introduced through Klenz-Safe
using the Company's proprietary methodology, the capture rate of sulfur exceeded
99.2% and maintained a minimum 98% rate throughout the testing.

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

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

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



                                       12

<PAGE>

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

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

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

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

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

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

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

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

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

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

o    Containment and neutralization of liquids and compounds;

o    Decontamination of equipment in pharmaceutical production;

o    Air filtration in indoor air quality control;

o    Flue and combustion gas scrubbing.

We are currently attempting to form a business relationship with one of more
third parties that may assist us in funding the cost of further testing of
Klenz-Safe's ability to remove contaminants from building air on a cost
effective basis; however, we are not able to provide any assurances that we will
be able to enter into such a business relationship. In addition, even if we are
able to enter into any such business relationship, it is probable that we will
be required to assign a partial interest in our Klenz-Safe Technology, or the
proceeds of such technology, to such third party in consideration of such third
party's agreement to assist in funding such additional testing.


                                       13

<PAGE>

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

To date, the cost of the research at Penn State was approximately $9,000, and
the cost of the research by the certified air quality laboratory was
approximately $5,000. In addition, during fiscal 2003 and 2004 we incurred
approximately $10,000 and $4,700, respectively for research relating to Klenz
Safe's ability to remove sulfur from flue burning smoke stacks. Funding for all
such research was provided by loans to the Company from our Chairman, Mr.
Anthony Campo.

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

HYDROGEN PRODUCTION TECHNOLOGY

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

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

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

                                       14

<PAGE>

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

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

In October 2003, but effective as of July 18, 2003, we entered into Consulting
Agreements with each of the Inventors (the "Consulting Agreements") pursuant to
which the Inventors agreed to assist the Company in obtaining grants from and/or
contracts with third parties for research and development relating to the PGH
Technology and in obtaining a patent on the technology described in the
Provisional Patent Application. All services under such Consulting Agreements
have been suspended by the Inventors for personal reasons. In October 2004, we
transferred the apparatus for our PGH Technology to the University of Kansas for
purposes of conducting further testing of the ability of our PGH Technology to
produce hydrogen. Initial results of such testing were positive, and we are
currently in negotiations to attempt to reach an agreement with a professor at
the University of Kansas to perform further testing on our PGH Technology. We
are unable to provide any assurances that such agreement will be reached. During
fiscal 2004, we spent approximately $4,500 on research relating to the PGH
Technology Funding for such research was provided by loans from our Chairman.

In February 2005 we filed a non provisional patent application with the PTO
relating to our PGH Technology. No assurances can be given, however, that the
PTO will grant our application.

POTENTIAL MARKETS FOR COMPANY'S PRODUCTS

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

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



                                       15

<PAGE>

ROTORCAM ENGINE

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

SEASONALITY
As the company is a development stage company, its business is not affected by
seasonality.


ITEM 3.  CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and the with the participation of the
Company's management, including the Company's Chief Executive Officer and its
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's controls and procedures, as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e). Based upon that evaluation, the Company's Chief Executive Officer
and its Chief Financial Officer concluded that the Company's disclosure controls
and procedures are effective in enabling the Company to record, process,
summarize and report information required to be included in the Company's
periodic SEC filings within the required time period.

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


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities and Use of Proceeds

On October 1, 2004, the Board of Directors approved the issuance of one (1)
million shares of the Company's Common Stock to Mr. John Byrne for his services
as a consultant to the Company between October 2003 and September 2005 in
connection with the development of the Company's hydrogen technology. Such
shares were issued to Mr. Byrne on November 30, 2004, and on such date the
closing sale price of the Company's Common Stock was $.0065. Therefore, based
solely on such closing sale price, the market value of the one (1) million
shares issued to Mr. Byrne on the date of issuance was approximately $6,500. The
shares issued to Mr. Byrne were issued without registration pursuant to Section
4(2) of the Securities Act of 1933 and are therefore "restricted" securities.
Such

                                       16

<PAGE>

shares may not be transferred without either the registration of such shares
with the Securities and Exchange Commission or an exemption from such
registration requirements pursuant to the Securities Act of 1933, as amended.

         On November 5, 2004, the Board of Directors approved the issuance of
two (2) million shares of the Company's Common Stock to the Company's Chief
Executive Officer, Dwight Foster, in consideration for his having served as
President of the Company from December 1998 to April 2002, as its Chief
Executive Officer from April 2002 to the present, and as a Director of the
Company from March 2000 to the present, in all such cases without any cash
compensation. Such shares were issued to Mr. Foster on November 5, 2004, and on
such date the closing sale price of the Company's Common Stock was $.0055.
Therefore, based solely on such closing sale price, the market value of the two
(2) million shares issued to Mr. Foster on the date of issuance was
approximately $11,000. The shares issued to Mr. Foster were issued without
registration pursuant to Section 4(2) of the Securities Act of 1933 and are
therefore "restricted" securities. Such shares may not be transferred
without either the registration of such shares with the Securities and Exchange
Commission or an exemption from such registration requirements pursuant to the
Securities Act of 1933, as amended.

         On December 17, 2004, Mr. Anthony Campo, the Chairman of the Board and
Executive Vice President of the Company, exercised a right to convert $7,500 of
indebtedness owed by the Company to Mr. Campo into 1,000,000 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 Noted dated August 1, 2004
in the principal amount of $1,876,014 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 of 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 90,000,000 shares. The terms of such
Promissory Note are further described in our Form 10-KSB for the fiscal year
ended July 31, 2004. The shares issued to Mr. Campo were issued without
registration pursuant to Section 4(2) of the Securities Act of 1933 and are
therefore "restricted" securities. Such shares may not therefore be transferred
without either the registration of such shares with the Securities and Exchange
Commission or an exemption from such registration requirements pursuant to the
Securities Act of 1933, as amended.

Item 3.  Defaults upon Senior Securities

We issued a promissory note to Mr. Campo, dated August 1, 2004, in the amount of
$1,876,014, which consolidated amounts we owed to Mr. Campo under our prior
notes. The August 1, 2004 note bears interest at 7.5% per annum, which is
payable quarterly on each November 1, February 1, May 1 and August 1, and
matures on August 1,2005.

We have defaulted on our quarterly interest payment due on November 1,2004 and
February 1, 2005. As of January 31, 2005, a total of $70,482 in unpaid interest
was owed to Mr. Campo under the August 1, 2004 note. Since we do not have any
revenues, it is doubtful that we will be able to pay any interest or principal
amounts due under the August 1, 2004 note until such

                                       17

<PAGE>

time as we have operating revenues, or we raise funds from an independent
source, both of which events may not occur at any time. Mr. Campo has the right
to convert unpaid amounts due under the August 1, 2004 Note into one share of
our common stock for each $.0075 due under such note so converted. In addition,
Mr. Campo has the right at any time to declare amounts due under such note
immediately due and payable.

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

Item 5.  Other Information-None


Item 6.  Exhibits and Reports on Form 8-K

         (A)  Exhibits

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

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


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

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

         (B)  Reports on Form 8-K - None



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

                           Dated:  March 13, 2005


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

                           Dated:  March 13, 2005


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:  March 13, 2005