EXHIBIT 99.1

Contact: Susan B. Railey
         (301) 468-3120
         Sharon Bramell                                    FOR IMMEDIATE RELEASE
         (301) 468-3130


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                          FOR JUNE OF 12 CENTS PER UNIT

                 Includes Mortgage Proceeds of 9 Cents Per Unit

                 Total for Second Quarter is 25.5 Cents Per Unit


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


     ROCKVILLE,  MD, June 20, 2003 -- (AMEX/AII) The general partner of American
Insured Mortgage Investors - Series 85, L.P. (AIM 85) today declared the monthly
distribution for June 2003 in the amount of 12 cents per unit. Holders of record
on June 30,  2003,  will  receive  this  amount  as part of the  second  quarter
distribution which will be paid on August 1, 2003.

The June distribution of 12 cents per unit includes the following:

- -    3 cents per unit regular cash flow;

- -    2 cents per unit mortgage proceeds due to the prepayment of the mortgage on
     Magnolia Place Apartments; and

- -    7 cents per unit mortgage proceeds due to the prepayment of the mortgage on
     Willow Dayton.

     Record dates for the AIM 85  distributions  occur at the end of each month.
Distributions  are paid  approximately  one month after the end of each calendar
quarter and include the three  amounts  declared  during the quarter.  The total
distribution  of 25.5  cents per unit for the second  quarter  of 2003  includes
three cents per unit  regular  cash flow for the months of April,  May and June,
plus 7.5 cents per unit mortgage proceeds for the month of April and 9 cents per
unit mortgage proceeds for the month of June.