Exhibit 99.1


                       Atlantic Coast Federal Corporation
              Elects Directors, Completes Inaugural Annual Meeting


    WAYCROSS, Ga.--(BUSINESS WIRE)--May 27, 2005--Atlantic Coast Federal
Corporation (NASDAQ/NM:ACFC), the holding company for Atlantic Coast
Federal, today held its first annual meeting of stockholders since the
Company's initial public offering last October.
    At the meeting, stockholders elected five directors. Elected for
three-years terms that expire with the 2008 annual meeting were Robert
J. Larison, Jr., President and Chief Executive Officer of the
Corporation; Jon C. Parker, Sr., Vice President and Chief Financial
Officer of Atlantic Coast Federal Corporation; and W. Eric Palmer,
Director of Patient Financial Services for the Mayo Clinic in
Jacksonville, Florida. Elected for a two-year term that expires with
the 2007 annual meeting was Thomas F. Beeckler, Owner, President and
Chief Executive Officer of the Beeckler Company, a real estate
development firm in Jacksonville. Elected to a one-year term that
expires with the 2006 annual meeting was Frederick D. Franklin, Jr., a
partner in the law firm of Rogers Towers, P.A., in Jacksonville.
    The Company's Directors continuing in office to future years
include: H. Dennis Woods, the Business Manager of the CSX
Transportation Inc. Warehouse in Waycross, Georgia; Robert J. Smith, a
Certified Public Accountant and Senior Vice President, Credit Risk
Management for PHH Mortgage in Jacksonville; Charles E. Martin, Jr., a
retired former machinist from CSX Transportation; and Forrest W.
Sweat, Jr., a partner in the law firm of Walker & Sweat in Waycross.
    Each of the Directors of Atlantic Coast Federal Corporation also
serves in similar capacities with Atlantic Coast Federal, MHC and
Atlantic Coast Federal, the Company's banking institution.
    Speaking to stockholders in attendance, Chairman Martin honored
the Company's three former Directors who became Directors Emeritus as
of today. "For approximately three decades, John Hinson, I. J. McGahee
and Cyril Morris served our institution, helping guide our growth and
development," he said. "They were great stewards of the public's trust
in Atlantic Coast Federal, and it gives me special pleasure at this
time to recognize these three distinguished gentlemen, who have
devoted a good part of their lives - both personally and
professionally - to building this Company."
    Reflecting on the Company's performance, President and Chief
Executive Officer Robert J. Larison, Jr. said, "We were pleased to see
the continued growth and prosperity of Atlantic Coast Federal
Corporation in 2004. The year was a milestone period for Atlantic
Coast Federal Corporation, with notable achievements in many areas. Of
course, the most significant event of the year was the completion of
our initial public stock offering on October 4, 2004. The capital
provided by the offering is already at work to strengthen our ability
to meet the financial needs of our markets, expand our product
offering, and extend the reach of our branch network. It is gratifying
to note that the momentum we saw building in 2004 has continued into
our new year. In our first quarter ended March 31, 2005, we witnessed
continued growth in total assets and our loan portfolio. Also, our
provision for loan losses in the first quarter declined from the
year-earlier amount, reflecting improved asset quality. These changes
were the primary factors that resulted in higher earnings for the
first quarter of 2005 versus the year-earlier period."
    Larison also noted that, because of its growth, Atlantic Coast
Federal Corporation was able to implement its planned dividend policy
during the first quarter of 2005. The Company's Board set the initial
quarterly cash dividend rate at $0.05 per common share, which was paid
on May 2, 2005.
    Concluding, Larison added: "We are pleased with the ongoing growth
we are experiencing across our markets as we strive to capitalize on
last year's initial public stock offering. With enhanced financial
strength, we continue to build our average level of interest-earning
assets and expand market share in the region."
    In other formal business conducted at the meeting, stockholders
approved the Atlantic Coast Federal Corporation 2005 Stock Option Plan
and the Atlantic Coast Federal Corporation 2005 Recognition and
Retention Plan, and ratified the appointment of Crowe Chizek and
Company LLC as the Company's independent registered public accounting
firm for 2005.
    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 approximately $674 million in assets
as of March 31, 2005, 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" and "outlook," 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: Corporate Communications, Inc.
             Patrick J. Watson, 615-254-3376