EXHIBIT 99.1

Atlantic Coast Federal Corporation Announces New Stock Repurchase Plan

    WAYCROSS, Ga.--(BUSINESS WIRE)--Sept. 1, 2006--Atlantic Coast
Federal Corporation (NASDAQ:ACFC), the holding company for Atlantic
Coast Bank, today announced that its Board of Directors has authorized
a new stock repurchase program to replace the one just completed.
Under the new program, the Company will purchase during the coming
year up to 478,000 shares or approximately 10% of its currently
outstanding publicly held shares of common stock. The repurchases may
be made from time to time in open-market or negotiated transactions as
deemed appropriate by the Company and will depend on market
conditions. The new program will expire in August 2007 unless
completed sooner or otherwise extended.
    Atlantic Coast Federal, MHC holds 8,728,500 shares or
approximately 63% of the Company's total outstanding stock. These
shares are not publicly traded and will not be subject to the
Company's repurchase program.
    Commenting on the announcement, Robert J. Larison, Jr., President
and Chief Executive Officer, said, "We are pleased to announce this
new authorization, our third in the past two years. This latest action
underscores our confidence in the Company's current business and
future prospects and, at the same time, supports our long-term
commitment to enhancing stockholder value."
    In August 2006, the Company completed its second repurchase
program, approved in September 2005. Under the second program,
Atlantic Coast Federal Corporation repurchased 579,520 shares of its
common stock for total consideration of approximately $9.0 million.
Since 2005, the Company has repurchased approximately 865,000 shares
of its common stock.
    Atlantic Coast Federal Corporation is the holding company for
Atlantic Coast Bank, 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.AtlanticCoastBank.net,
under the Investor Information section.
    Atlantic Coast Bank, with approximately $779 million in assets as
of June 30, 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 Bank 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: For Atlantic Coast Federal Corporation:
             Corporate Communications, Inc.
             Patrick J. Watson, 615-254-3376