EXHIBIT 99.1
Contact: Susan B. Railey
         (301) 468-3120
         Sharon Bramell                     FOR IMMEDIATE RELEASE
         (301) 231-0351


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                         FOR MARCH OF TWO CENTS PER UNIT

                  Total for the First Quarter is $2.01 Per Unit


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     ROCKVILLE, MD, March 22, 2004 -- (AMEX/AII) The general partner of American
Insured Mortgage Investors - Series 85, L.P. (AIM 85) today declared the monthly
distribution  for March  2004 in the amount of two cents per unit  regular  cash
flow.  Holders of record on March 31, 2004 will  receive  this amount as part of
the first quarter distribution which will be paid on May 3, 2004.


     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 $2.01 per unit for the first quarter of 2004 includes two cents
per unit regular cash flow for January, February and March, plus $1.125 per unit
mortgage and  debenture  proceeds for the month of January,  plus 82.5 cents per
unit mortgage and debenture proceeds for the month of February.

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