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


                      AIM 85 DECLARES MONTHLY DISTRIBUTION
                       FOR DECEMBER OF 12.5 CENTS PER UNIT

                 Includes Mortgage Proceeds of 10 Cents Per Unit

                Total for the Fourth Quarter is 20 Cents Per Unit

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


     ROCKVILLE,  MD,  December  19, 2003 --  (AMEX/AII)  The general  partner of
American  Insured  Mortgage  Investors - Series 85, L.P. (AIM 85) today declared
the monthly distribution for December 2003 in the amount of 12.5 cents per unit.
Holders of record on December  31, 2003 will  receive this amount as part of the
fourth quarter distribution which will be paid on February 2, 2004.

The December distribution of 12.5 cents per unit includes the following:

o        2.5 cents per unit regular cash flow; and
o        10 cents per unit mortgage proceeds due to the prepayment of the
         mortgages on Rainbow Terrace Apartments and Village Knoll
         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 20 cents per unit for the fourth quarter of 2003 includes three
cents per unit  regular cash flow for the months of October and November and 2.5
cents per unit regular  cash flow for the month of December,  plus 1.5 cents per
unit representing assignment proceeds for the month of November and 10 cents per
unit mortgage proceeds for the month of December.


                                      # # #