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


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                         FOR MAY OF 47.5 CENTS PER UNIT

                Includes Mortgage Proceeds of 45.5 Cents Per Unit

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


     ROCKVILLE,  MD, May 19, 2004 -- (AMEX/AII) The general  partner of American
Insured Mortgage Investors - Series 85, L.P. (AIM 85) today declared the monthly
distribution  for May 2004 in the  amount of 47.5  cents per  unit.  Holders  of
record on May 31, 2004 will  receive  this amount as part of the second  quarter
distribution which will be paid on August 2, 2004.

The May distribution of 47.5 cents per unit includes the following:

o       2 cents per unit regular cash flow; and
o       45.5 cents per unit mortgage proceeds due to 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.

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