Exhibit 99.1

       Atlantic Coast Federal Corporation Added to the Russell 2000 Index;
       Also Now Included in the America's Community Bankers NASDAQ Index

    WAYCROSS, Ga.--(BUSINESS WIRE)--Dec. 17, 2004--Atlantic Coast
Federal Corporation (NASDAQ/NM: ACFC), the holding company for
Atlantic Coast Federal, today announced that it has been selected to
be added to the Russell 2000 Index(R) as part of the fourth quarter
update to reflect recent initial public offerings. The final list will
be published today after the close of U.S. equity markets.
    The Company also noted that, on December 1, 2004, its stock was
included in the America's Community Bankers NASDAQ Index of
approximately 520 community banks. According to the America's
Community Bankers, it is the most broadly representative stock index
for the community bank segment of the banking industry.
    "We are very pleased to have been named to the Russell 2000 and
Russell 3000 indices, as well as the ACB NASDAQ Index," said Robert J.
Larison, Jr., President and Chief Executive Officer of Atlantic Coast
Federal Corporation. "We believe inclusion in these indices will
increase our visibility with investors and institutions that rely on
the Russell indices as part of their investment strategy, or those who
have a special interest in or focus on investing in community bank
stocks. Thus, being a part of these indices should provide us with the
opportunity to expand our shareholder base as we continue to focus on
the growth of our Company over the long term."
    Produced by the Frank Russell Company, The Russell 2000 index is a
subset of the Russell 3000, which measures the performance of the 3000
largest U.S.-based companies ranked by market capitalization. The
Russell 2000 is an index of the 2000 smallest companies on the Russell
3000 list.
    Annual reconstruction of the Russell indices occurs mid-year;
however, newly public companies are now added on a quarterly basis to
enhance how well each index reflects its segment of the U.S. equity
market. To be eligible for inclusion, the IPO date would need to fall
within the three-month period prior to the "rank" date. As IPOs are
added to Russell indices each quarter, Russell will not delete
existing index members to make room for them, but will continue to
reconstitute the indices fully each year at the end of the second
quarter. For a full listing of companies to be added to the Russell
2000 Index for the fourth quarter, visit the Russell website at
www.russell.com. Launched in December 2003, the ACB NASDAQ Index
provides a gauge for the capital markets to use in measuring the
performance of community bank stocks and, as a result, it is intended
to bring greater visibility to community banks and promote greater
market liquidity. The index trades under the NASDAQ symbol ACBQ.
    Atlantic Coast Federal Corporation is the holding company for
Atlantic Coast Federal, a federally chartered and insured stock
savings association that was organized in 1939 as a credit union to
serve the employees of the Atlantic Coast Line Railroad. In November
2000, the credit union converted its charter from a federal credit
union to a federal mutual savings association and, in January 2003,
Atlantic Coast Federal Corporation was formed as the holding company.
The Company completed its initial public stock offering in October
2004. Investors may obtain additional information about Atlantic Coast
Federal Corporation on the Internet at www.acfederal.net, under the
Investor Information section.
    Atlantic Coast Federal, with $623 million in assets as of
September 30, 2004, is a community-oriented financial institution. It
serves southeastern Georgia and northeastern Florida through 13
offices, including a growing presence in the Jacksonville metropolitan
area.
    This news release contains forward-looking statements within the
meaning of the federal securities laws. Statements in this release
that are not strictly historical are forward-looking and are based
upon current expectations that may differ materially from actual
results. These forward-looking statements, identified by words such as
"believe," "should," and "intended," involve risks and uncertainties
that could cause actual results to differ materially from those
anticipated by the statements made herein. These risks and
uncertainties involve general economic trends and changes in interest
rates, increased competition, changes in consumer demand for financial
services, the possibility of unforeseen events affecting the industry
generally, the uncertainties associated with newly developed or
acquired operations, and market disruptions and other effects of
terrorist activities. The Company undertakes no obligation to release
revisions to these forward-looking statements publicly to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unforeseen events, except as required to be reported
under the rules and regulations of the Securities and Exchange
Commission.

    CONTACT: Atlantic Coast Federal Corporation
             Patrick J. Watson, 615-254-3376