Exhibit 99.1

   Atlantic Coast Federal Corporation Increases Quarterly Dividend
                       to $0.09 Per Common Share

    WAYCROSS, Ga.--(BUSINESS WIRE)--March 31, 2006--Atlantic Coast
Federal Corporation (NASDAQ/NM:ACFC), the holding company for Atlantic
Coast Federal, today announced that its Board of Directors has voted
to increase the Company's regular quarterly cash dividend rate on
common stock to $0.09 per share. This new rate represents an increase
of $0.01 from the preceding quarter and goes into effect with the next
dividend that will be paid on May 1, 2006, to all stockholders of
record as of April 14, 2006.
    Atlantic Coast Federal, MHC, which holds 8,728,500 shares or 61.7%
of the Company's total outstanding stock, has informed the Company
that it will waive receipt of the dividend on its shares.
    Commenting on the announcement, Robert J. Larison, Jr., President
and Chief Executive Officer, said, "Coming off a solid finish to
fiscal year 2005, and with the ongoing strength of our business, we
are pleased to increase our quarterly dividend rate again - the fourth
consecutive quarterly increase since we commenced dividend payments
last year. This action demonstrates in a direct and tangible way our
dedication to creating greater value for our stockholders over time."

    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 $744 million in assets
as of December 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