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, 2004

                                       or

/ /  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934 For the transition period from _____________ to

                       Commission File Number 33-19048-NY

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

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

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

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

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

Indicate by check mark whether the Issuer:

(1) Has filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports):
Yes   X           No
    ------           ------
(2) Has been subject to such filing requirements for the past 90 days.

Yes   X           No
    ------           ------

80,153,434 shares of the registrant's Common Stock, $.0001 per share, were
outstanding as of March 11, 2004.






<PAGE>


                      MURRAY UNITED DEVELOPMENT CORPORATION

                                TABLE OF CONTENTS
                                   FORM 10-QSB



                          PART I FINANCIAL INFORMATION


Item Number                                                                 Page

Item 1.             Financial Statements

                          Balance Sheets                                    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.                                                                  17

Signatures                                                                   18

Certifications






<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, 2004     July 31, 2003

Current assets


Cash & cash equivalents                        $    985            $  8,252
Loan Receivable                                   2,000               2,000
                                               --------            --------
Total current assets                           $  2,985            $ 10,252


Furniture & equipment, at
cost, net of accumulated
depreciation                                     45,837              50,004
                                               --------            --------

Total Assets                                   $ 48,822            $ 60,256
                                               ========            ========





    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, 2004     July 31, 2003

<S>                                                                 <C>               <C>
Current liabilities:
     Accounts payable and Accrued Expenses                           $   10,980         $  18,832
                                                                     ----------         ---------

    Total current liabilities                                            10,980            18,832

Other liabilities:
     Accrued Interest Payable                                            62,644           110,197
     Notes payable-other stockholder                                  1,700,606         1,541,909
     Accrued Compensation                                               148,128           148,128
                                                                     ----------         ---------

    Total other liabilities                                           1,911,378         1,800,234
                                                                     ----------         ---------

    Total liabilities                                                 1,922,358         1,819,066
                                                                     ----------         ---------


Stockholders' deficiency:

Common Stock, par value $.0001:
   Authorized 200,000,000 shares;
   issued and outstanding
   80,153,434 shares and  79,953,434                                      8,016             7,996
Additional paid-in capital                                            2,547,431         2,541,451
Deficit accumulated in the development stage                         (4,428,983)       (4,308,257)
                                                                     ----------         ---------

     Total stockholders' deficiency                                  (1,873,536)       (1,758,810)
                                                                     ----------         ---------

     Total Liabilities and Stockholders' Deficiency                  $   48,822         $  60,256
                                                                     ==========         =========



</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, 2004 AND 2003


                                   (UNAUDITED)

                                                 2004                2003

Income
Interest income                                $       -          $       -
                                               ---------          ---------

Total Income                                           -                  -

Expenses
Research and Development costs                         -                  -
Licensing fees-stockholder and affiliate               -                  -
General and administrative expenses               28,443             16,849
Interest expense-stockholder and affiliate        31,606             27,577
                                               ---------          ---------
Total Expenses                                   (60,049)           (44,426)
                                               ---------          ---------

Net loss                                       $ (60,049)         $ (44,426)
                                               ---------          ---------

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



    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, 2004 AND 2003
                  AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE 0F INCEPTION)
                                   (UNAUDITED)


<TABLE>
<CAPTION>

                                                                               CUMULATIVE
                                                                                AMOUNTS
                                                                                 FROM
                                                 2004          2003            INCEPTION

<S>                                         <C>            <C>            <C>
Income
Interest income                              $ -            $        -      $     66,465
                                             ----------     ----------      ------------

Total Income                                          -              -            66,465

Expenses
Research and Development costs                        -              -           868,716
Licensing fees-stockholder and
affiliate                                             -              -            57,260
General and administrative expenses              58,081         65,440         2,837,094
Interest expense-stockholder and
affiliate                                        62,645         54,586           732,378
                                             ----------     ----------      ------------
Total Expenses                                 (120,726)      (120,026)       (4,495,448)
                                             ----------     ----------      ------------

Net loss                                     $ (120,726)    $ (120,026)     $ (4,428,983)
                                             ----------     ----------      ------------

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

Weighted average number of
common shares out                            79,987,000     79,953,434        80,153,434
                                             ----------     ----------      ------------

</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, 2004
                  AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                              (DATE 0F INCEPTION)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                         Deficit
                                        Common                                         Accumulated
                                        Stock                         Additional           the
                                       Number of                        Paid in         Development
                                        Shares         Amounts          Capital           Stage               Total



<S>                                  <C>              <C>          <C>              <C>                  <C>
Balance July 31, 2003                  79,953,434       $ 7,996      $ 2,541,451      $ (4,308,257)        $(1,758,810)
Expenses paid May 1
Issuance of Stock                         200,000          $ 20          $ 5,980
Net loss for the six months
ended 01/31/2004                                                                          (120,726)           (120,726)
                                      -----------       --------      -----------     ------------         -----------
                                      $80,153,434       $ 8,016       $ 2,547,431     $ (4,428,983)        $(1,879,536)
                                      -----------       --------      -----------     ------------         -----------


</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, 2004 AND 2003
                    CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDTIED)


<TABLE>
<CAPTION>
                                                                                       Cumulative
                                                                                          from
                                                               2004        2003         Inception
                                                           ---------    ---------    -------------
<S>                                                        <C>          <C>          <C>
Operating activities:
Net Loss                                                   $(120,726)   $(120,026)   $ (4,428,983)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciaton and Amortization                                   4,166        4,166         214,658
Expenses paid through issuance of common stock by:
    Company                                                    6,000            -         529,785
    Principal Stockholder                                          -            -         220,900
Changes in operating assets and liabilities:
     Loan Receivable                                                                       (2,000)
    Accounts Payable  Accrued Expenses                       (55,405)     (28,942)        221,752
                                                           ---------    ---------      ----------
Net cash used in operating activities                       (165,965)    (144,802)     (3,243,888)
                                                           ---------    ---------      ----------

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                  $ 158,698    $ 145,149      $1,827,277
    Principal payments                                             -            -        (126,667)
    Proceeds from the issuance of common stock (net)               -            -       1,804,760
                                                           ---------    ---------      ----------
Net cash provided by financing activities                    158,698      145,149       3,505,370
                                                           ---------    ---------      ----------
Net increase (decrease) in cash and cash equivalents          (7,267)         347             985
Cash and cash equivalents, beginning of period                 8,252          364               -
                                                           ---------    ---------      ----------
Cash and cash equivalents, end of period                   $     985    $     711           $ 985
                                                           ---------    ---------      ----------
 Supplemental disclosure of cash flow data:
  Interest Paid                                            $       -    $       -        $ 32,420
                                                           ---------    ---------      ----------

</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

In the opinion of management, the accompanying unaudited condensed financial
statements reflect all adjustments, consisting of normal recurring accruals,
necessary to present fairly the Company's financial position as of January 31,
2004 and its results of operations and cash flows for the three months ended
January 31, 2004. These unaudited condensed financial statements should be read
in conjunction with the financial statements and other information in the July
31, 2003 Form 10-KSB.

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

The Company has been in the development stage since inception. Activities of the
Company have been limited to the acquisition of funds from the sale of its
common stock; the acquisition of the licensing rights for and, subsequently,
title to, the engine technology; research and development related to the
development of an initial fuel-driven prototype of the engine that was
successfully tested on a preliminary basis in January 1990; 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 the 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 producing technologies 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, 2004, the
Company had not been able to commercially utilize its engine, cleaning solution
or hydrogen technologies to generate revenues or cash flows from operating
activities. As a result, it has suffered recurring losses from operations from
inception that have generated the net stockholders' deficiency of $1,879,536 as
of January 31, 2004 and have also generated significant working capital
deficiencies from time to time. Management does not expect the Company to
generate any significant revenues or positive operating cash flows during the
twelve-month period subsequent to January 31, 2004. The limited amount of liquid
resources available at January 31, 2004, and the inability to generate operating
revenues and cash flows raise substantial doubts about the Company's ability to
continue as a going concern.


                                      -8-
<PAGE>

The Company plans to continue research and development activities on at least a
limited basis through the twelve-month period subsequent to January 31, 2004.
However, management believes that, the net liquid assets available at January
31, 2004 will not be sufficient to enable the Company to meet its obligations
and to continue as a going concern during the ensuing twelve-month period even
on this limited basis without limiting research and development and other
operating activities more severely unless it obtains additional debt or equity
financing and/or government sponsored research.

Management believes that continuation of the Company as a going concern during
the twelve-month period subsequent to January 31, 2004 and thereafter will
depend upon the Company's ability to obtain sufficient additional working
capital to fund research and development activities on its Klenz-Safe and
hydrogen technologies and the general and administrative expenses to be incurred
during the remaining development period. Potential sources of such working
capital include: the private or public sale of common stock, the exercise of a
substantial portion of the 15,398,000 outstanding Class B warrants prior to
their proposed expiration on March 11, 2005, 14,898,000 of which are exercisable
at $0.15 per share and 500,000 of which are exercisable at $.225 per share; and
borrowing additional amounts from related parties or other sources. However,
there can be no assurances that such financing will be available. The
accompanying financial statements do not include any adjustments that might
result from the uncertainties related to the ability of the Company to continue
as a going concern.


NOTE 2 - SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES:

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

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

Net loss per common share:
         Net loss per common share was computed on the basis of the weighted
         average number of shares of common stock outstanding during each
         period. The effect of assuming the exercise of outstanding warrants was
         antidilutive and, accordingly, not included in the computation of net
         loss per share.




                                      -9-
<PAGE>


NOTE 3 - RELATED PARTY TRANSACTIONS:

         Information as to agreements with, and notes payable to, related
         parties is set forth in the financial statements in the July 31, 2003
         Form 10-KSB


NOTE 4 - STOCKHOLDER'S EQUITY:

         Information as to stockholders' equity is set forth in the financial
statements in the July 31, 2003 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, 2004 of $4,428,983. Our revenues from our inception on October 13,
1987 through January 31, 2004 aggregating $66,465 were derived from interest
earned. Interest income was zero in the periods ended January 31, 2004 and
January 31, 2003 as a result of a decrease in the amount of funds available for
investment.

The cumulative loss from inception includes research and development costs of
$868,716. There were no research and development costs in the periods ended
January 31, 2004 and January 31,2003. We have had to reduce substantially our
research and development activities due to liquidity problems.



                                      -10-
<PAGE>

Our cumulative loss from inception includes general and administrative expenses
of $2,837,094. General and administrative expenses decreased to $58,081 in the
period ending January 31, 2004 from $65,440 in the period ending January
31,2003, or an 11.2% decrease. Decreased general and administrative expenses can
be attributed to decreased legal and other professional expenses.

Our cumulative loss from inception also includes past licensing fees, of which
there were none during the period ended January 31, 2004, 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 $732,378 on
promissory notes payable to our principal stockholder and chairman. Interest
expense increased to $62,645 in the period ending January 31, 2004 from $54,586
in the quarter ending January 31, 2003, primarily as a result of increased loans
to us by our chairman and principal stockholder.

Our net loss of $120,726 in the period ended January 31, 2004 increased by $700,
or 0.6%, over the net loss of $120,026 in January 31, 2003. Increases in
interest expense caused the overall increase.


LIQUIDITY AND CAPITAL RESOURCES

At January 31, 2004, we had cash and short-term investments totaling
$985(compared to liquid assets of $8,252 at July 31, 2003), a working capital
decrease of $7,267 (compared with a working capital increase of $7,888 at July
31, 2003) and a total stockholders' deficiency of $1,879,536 (compared to a
deficiency of $1,758,810 at July 31, 2003). The stockholders' deficiency
increased due to the net loss of $120,726 incurred in the six months ended
January 31, 2004.

At January 31, 2004, we had current liabilities in excess of current assets of
$7,995. We have not been able to commercially utilize our engine, Klenz-Safe or
hydrogen technologies to generate any revenue through that date, and as a
result, we have suffered recurring losses from operations from inception that
have generated the net capital deficiencies at January 31, 2004 as well as July
31, 2003 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, 2004. Cash flows used
by operating activities were $165,965 and $144,802 in the periods ended January
31, 2004 and January 31,2003, respectively. The limited amount of liquid
resources available at January 31, 2004, 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

         In view of the Company's inability to raise the approximately $2.5 to
$3 million needed to develop the Rotorcam Engine, for commercialization,
management's current efforts are focused on certain other technologies that we
are in the process of developing.


KLENZ-SAFE TECHNOLOGY

         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 of 98% rate throughout the testing.

We have requested Penn State Energy Institute to submit to us a proposal for it
to conduct a pilot study of Klenz-Safe's effectiveness in eliminating or
reducing sulfur and other contaminants in a working coal burning smoke stack.
Assuming an acceptable proposal is received, funding for the pilot study is
expected to be provided by our Chairman in his sole discretion. There are no
assurances that the Company will accept the Institute's proposal or that, even
if such tests are conducted, they will be successful. However, if the tests are
successfully conducted, we intend to seek distribution partners to assist us in
marketing and selling the Klenz-Safe product to the coal burning utility market.

         We also previously engaged a certified indoor air quality laboratory to
perform a series of laboratory tests on Klenz-Safe to determine Klenz-Safe's
ability to remove pollutants and contaminants from building air and to examine
other potential industrial uses. The tests simulated wet scrubber equipment,
which is commonly used device for removing pollutants from building air. Based
on generally known industry practices, management believes that the range of
pollutants captured by Klenz-Safe and the rate of such capture have not been
previously achieved in a single operation.



                                      -12-
<PAGE>


        The following were the material findings of the laboratory tests:

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

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

o    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.

         In October 2002 we conducted field tests of Klenz-Safe in an actual
working wet scrubber. These tests confirmed the prior laboratory results that
Klenz-Safe is able to capture sulfur dioxide in wet scrubber equipment. During
these tests, Klenz-Safe captured 100% of the sulfur dioxide and a high
percentage of other air contaminants in the air passing through the wet
scrubber. Klenz-Safe compared favorably in capture efficiency to a caustic
solution used in the testing for purposes of comparison, though the caustic
solution was somewhat more economical.

         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 believe that potential markets for Klenz-Safe include the chemical
production, manufacturing, food processing, pharmaceutical production, utility
and indoor air quality control industries. However, we cannot provide any
assurances that we will be able to successfully market and sell our Klenz-Safe
products.



                                      -13-
<PAGE>

         To date, the cost of the research at Penn State was approximately
$9,000, and the cost of the research by the certified air quality laboratory was
approximately $5,000. Funding for such research was provided by loans to the
Company from our Chairman, Mr. Anthony Campo.

         In October 2002 we filed an application for a provisional patent
covering our Klenz-Safe technology, and in February 2003 we filed an amendment
to the October 2002 provisional patent application that revised certain data in
the October 2002 provisional patent application. In February 2004 we filed a non
provisional patent application covering use of Klenz-Safe in removal or
reduction of sulfur and other contaminants from flue gases as well as
elimination or reduction of contaminants from building air. We have previously
been granted trademark protection for the name "Klenz-Safe" from the US Patent
and Trademark Office.

         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.


HYDROGEN PRODUCTION TECHNOLOGY

         In light of the energy plan of President Bush encouraging the use of
hydrogen fuel cells in place of fossil fuels such as oils and gas, management
has begun to investigate 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 U.S. Patent and Trademark Office ("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 accordance with its agreement, in
December 2003 the Company registered the 200,000 shares of Common Stock on Form
S-8 and then issued 100,000 of such shares to each of the Inventors.



                                      -14-
<PAGE>

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

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

         The filing of a provisional patent application preserves a priority
filing date; however, it is not examined by the PTO for patentability. In order
to obtain a patent on the PGH Technology, we are required to file a
non-provisional patent application on or before July 18, 2004. Although we
intend to file a non-provisional application on or before the above date, we
cannot provide any assurances that we will finally be able to obtain a patent on
the PGH Technology.

         By separate agreement dated as of October 2, 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. In
consideration for such services, we agreed to issue to each of the Inventors
100,000 shares of the Company's Common Stock upon receipt of grants or contracts
resulting in at least $250,000 of revenue to the Company and an additional
100,000 shares of Common Stock upon the grant by the PTO of a patent on the PGH
Technology under the Provisional Patent Application. All such shares of Common
Stock will be "restricted securities" and may therefore not be sold or
transferred other than in accordance with an exemption from the registration
requirements of applicable federal and states securities laws. The term of the
Consulting Agreements is from the effective date of the agreement until the
services have been completed. However, the Company will have the right to
terminate the Consulting Agreements if a patent has not been issued by the PTO
on or before July 18, 2005.

         We are presently producing hydrogen using our proprietary apparatus and
solution and have engaged a third-party laboratory to quantify the amount of
hydrogen being produced in order to determine feasibility of commercializing
this technology. During the approximately 60-75 day period after the filing of
this Report, we intend to continue hydrogen production using various compounds
to determine the optimal mixture for the production of hydrogen. Upon completion
of such testing, we intend to file a non-provisional patent application with the
U.S. Patent and Trademark Office that includes the results of our testing. We
cannot provide any assurances that the Patent and Trademark Office will
ultimately grant a patent on our technology. After filing the patent
application, we intend to continue to improve the apparatus used with our
technology and to determine the most economically efficient method of
production.



                                      -15-
<PAGE>

         There is no material relationship between either of the Inventors and
the Company, any director or officer of the Company, or any associate of such
directors and officers.

         We intend to enter into an arrangement with The Pennsylvania Technology
Consortium to produce prototypes of the apparatus for production of photo
galvanic hydrogen. Mr. Robert Van Dine, the President of the Company, is a
principal owner of The Pennsylvania Technology Consortium. No terms of our
proposed arrangement with The Pennsylvania Technology Consortium have been
agreed upon. However, the Company intends that any such terms will be comparable
to those that may be obtained from an unaffiliated third party.


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
will take up to 4 years and $3 million in order to develop the Rotorcam Engine
for commercial sale. We therefore first intend to use any funds that may become
available to further develop our Klenz-Safe and PGH technologies, which we
believe have the potential to generate operating revenues much earlier than the
Rotorcam Engine. We will, however, continue to evaluate possible
commercialization of the Rotorcam Engine in light of future facts and
circumstances.


ITEM 3.  CONTROLS AND PROCEDURES

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

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


                                      -16-
<PAGE>


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities and Use of Proceeds- None

Item 3.  Defaults upon Senior Securities

We issued a promissory note to Mr. Campo, dated August 1, 2003, in the amount of
$1,652,106, which consolidated amounts we owed to Mr. Campo under our prior
notes. The August 1, 2003 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 1,2004.

We have defaulted on our quarterly interest payment due on November 1, 2003 and
February 1, 2004. As of January 31, 2004, a total of $61954 in unpaid interest
was owed to Mr. Campo under the August 1, 2003 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, 2003 note until such time as we have operating
revenues, or we raise funds from an independent source, both of which events may
not occur at any time. Mr. Campo has the right to convert unpaid amounts due
under the August 1, 2003 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.






                                      -17-
<PAGE>

                                   SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                           MURRAY UNITED DEVELOPMENT CORPORATION
                           (Registrant)


                             By:     /s/  Dwight Foster
                                     -------------------------
                                     Dwight Foster
                                     Chief Executive Officer

Dated:  March 15, 2004


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


Dated: March 15, 2004



                                      -18-