EXHIBIT 99.1








                         LUSE GORMAN POMERENK & SCHICK
                           A PROFESSIONAL CORPORATION
                                ATTORNEYS AT LAW

                     5335 WISCONSIN AVENUE, N.W., Suite 400
                              WASHINGTON, DC 20015
                                  --------------
                            TELEPHONE (202) 274-2000
                            FASCIMILE (202) 362-2902
                                www.luselaw.com

WRITER'S DIRECT DIAL NUMBER                                      WRITER'S E-MAIL

(202) 274-2030                                           rgarabedian@luselaw.com


April 2, 2007

VIA EMAIL
- ---------

Thomas Choe
Analyst
The NASDAQ Stock Market, LLC
9600 Blackwell Road
Rockville, Maryland 20850


         Re:      Atlantic Coast Federal Corporation (Trading Symbol ACFC)
                  Notice of Non-Compliance
                  --------------------------------------------------------

Dear Mr. Choe:

         On behalf of Atlantic Coast Federal Corporation (the "Company"), whose
shares of common stock are listed on the NASDAQ Global Market, we hereby notify
you that the Company had become aware of its material non-compliance with the
requirements of NASDAQ Rule 4350(d)(2)(A). The non-compliance related to legal
fees paid by the Company to the law firm of which a former audit committee
member is a partner.

         The director has resigned from the Company's Audit Committee, effective
March 29, 2007. Following the resignation, the Board of Directors of the Company
appointed a new independent board member to the Audit Committee of the Company.
The Audit Committee then met in order to perform its duties required in
connection with the Company's Annual Report on Form 10-K and Annual Meeting of
Stockholders and to ratify the Company's previous actions. As a result, the
Company is now in compliance with the NASDAQ's corporate governance
requirements. Specifically, (i) the audit committee is comprised solely of
independent directors and (ii) decisions relating to appointing a registered
public accounting firm and the issuance of an Audit Committee report were made
by a committee comprised solely of independent directors.







The NASDAQ Stock Market, LLC
April 2, 2007
Page 2


         Please direct any questions with regard to this notice to the
undersigned at (202) 274-2030 or Benjamin Azoff at (202) 274-2010.

                                  Respectfully,

                                  /s/ Richard S. Garabedian

                                  Richard S. Garabedian


cc:      Robert J. Larison, Jr., President and Chief Executive Officer
         Thomas B. Wagers, Sr., Chief Operating Officer
         Benjamin Azoff, Esq.