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


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                         FOR JANUARY OF $1.145 PER UNIT

                 Includes Mortgage Proceeds of $ 1.125 Per Unit


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


     ROCKVILLE,  MD,  January 21,  2004 --  (AMEX/AII)  The  general  partner of
American  Insured  Mortgage  Investors - Series 85, L.P. (AIM 85) today declared
the  monthly  distribution  for  January  2004 in the amount of $1.145 per unit.
Holders of record on January  31, 2004 will  receive  this amount as part of the
first quarter distribution which will be paid on May 3, 2004.

The January distribution of $1.145 per unit includes the following:

     o    2 cents per unit regular cash flow;
     o    57 cents per unit mortgage proceeds due to the prepayment of the
          mortgage on Pleasant View Nursing Home;
     o    13.5 cents per unit mortgage proceeds due to the prepayment of the
          mortgage on Stone Hedge Village Apartments; and
     o    42 cents  per  unit of  mortgage  proceeds  due to the  redemption  of
          debentures  issued by HUD in exchange  for the  mortgages  on Baypoint
          Shoreline  Apartments,  College Green Apartments,  Brougham Estates II
          and Town Park 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.

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