Exhibit 99.1

         Atlantic Coast Federal to Become Atlantic Coast Bank

    WAYCROSS, Ga.--(BUSINESS WIRE)--July 17, 2006--

     Company Announces New Small Business Products and Initiatives

    Atlantic Coast Federal Corporation (NASDAQ: ACFC), the holding
company for Atlantic Coast Federal, today announced that the Company
will change the name of its banking unit to Atlantic Coast Bank. The
renaming effort is expected to begin later this month with a new
identity program for the bank, advertising and media support, as well
as signage changes at the branches that are expected to be completed
during the next six months. While the change in no way affects the
operations of the bank, its customers, or its service, the new name
better reflects the bank's current breadth of products, expanded
capabilities, and focus on business development, especially in growing
coastal markets like Jacksonville.
    Commenting on the announcement, Robert J. Larison, Jr., President
and Chief Executive Officer, said, "In 2000, we converted our charter
to a stock savings association in order to expand the bank's reach to
new customers. As a bank, versus our prior credit union status, we
have been able to extend our product line with commercial lending and
small business-oriented products that, in turn, have helped accelerate
our growth and add additional momentum to our business. The capital we
raised in our October 2004 initial public offering supports those
efforts and underscores the success we have achieved with these new
strategies.
    "Since our banking activities are no longer as limited in scope,
and with a much stronger capital base to further our expansion, we
think it is fitting to add Bank to our new name," Larison added. "We
believe this change expresses more clearly our expanded capabilities
as a full-service bank, articulates our broader focus to current and
potential customers, and helps convey the vision we have for banking
along the Atlantic Coast."
    In regard to the Atlantic Coast's expanding product line, Larison
noted that, along with a generally stronger focus on commercial
lending, the Bank recently has introduced new products targeted at
small business customers. These new products include business checking
accounts and business lines of credit. Atlantic Coast also has
introduced Private Banking to the Jacksonville market as a way of
integrating and enhancing an array of products and services for
business owners and professionals.

    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 $771 million in assets
as of March 31, 2006, 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. Atlantic Coast Federal expects to open two additional branches
in St. Johns County, Florida, in the next year.

    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
"will," expected, "believe," and "prospects," 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