EXHIBIT 99.1

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


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                       FOR AUGUST OF THREE CENTS PER UNIT


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


     ROCKVILLE,  MD,  August  20,  2003 --  (AMEX/AII)  The  general  partner of
American  Insured  Mortgage  Investors - Series 85, L.P. (AIM 85) today declared
the monthly  distribution  for August 2003 in the amount of three cents per unit
regular  cash flow.  Holders of record on August 31,  2003,  will  receive  this
amount as part of the third quarter  distribution which will be paid on November
3, 2003.


     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.