EXHIBIT 99.1


     Contact:     Susan B. Railey
                  (301) 468-3120
                  Sharon Bramell                     FOR IMMEDIATE RELEASE
                  (301) 231-0351


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                          FOR JUNE OF 43 CENTS PER UNIT

                Includes Mortgage Proceeds of 41.5 Cents Per Unit

               Total for the Second Quarter is 92.5 Cents Per Unit

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


     ROCKVILLE,  MD, June 21, 2004 -- (AMEX/AII) The general partner of American
Insured Mortgage Investors - Series 85, L.P. (AIM 85) today declared the monthly
distribution for June 2004 in the amount of 43 cents per unit. Holders of record
on June  30,  2004  will  receive  this  amount  as part of the  second  quarter
distribution which will be paid on August 2, 2004.

The June distribution of 43 cents per unit includes the following:

o       1.5 cents per unit regular cash flow;
o       34.5 cents per unit mortgage proceeds due to the prepayment of the
        mortgage on Northwood Place; and
o       7 cents per unit additional mortgage proceeds from the prepayment of the
        mortgage on Waterford Green Apartments.

     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 92.5 cents per unit for the second quarter of 2004 includes two
cents  per unit  regular  cash  flow for  April  and May and 1.5  cents per unit
regular  cash flow for the  month of June,  plus  45.5  cents per unit  mortgage
proceeds for the month of May,  plus 41.5 cents per unit  mortgage  proceeds for
the month of June.

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