Exhibit 99.1

Atlantic Coast Federal Corporation Announces Branch Opening in Julington Creek,
                                    Florida

    WAYCROSS, Ga.--(BUSINESS WIRE)--Oct. 27, 2006--Atlantic Coast
Federal Corporation (NASDAQ: ACFC), the holding company for Atlantic
Coast Bank, today announced the opening of a new branch office in St.
Johns County, midway between Jacksonville and St. Augustine. The new
branch is Atlantic Coast Bank's eighth location in the greater
Jacksonville area.

    Situated at the corner of Race Track Road and Flora Branch Road,
the Julington Creek branch is conveniently located just minutes from
many of Jacksonville's newest communities. The full-service office
offers convenient banking hours, drive-thru service, an ATM, safe
deposit boxes, a night depository, and a PC banking area designated
for customers' access. Randy Turpin is the branch manager.

    Commenting on the branch opening, Robert J. Larison, Jr.,
President and Chief Executive Officer, said, "We are pleased to
announce the Bank's continued growth in Jacksonville and the expansion
of our banking footprint southward into fast-growing St. Johns County.
This area is a focal point for residential development as Jacksonville
grows and it is attracting young, prosperous families that give the
area strong demographic characteristics. We think it's a great place
to be and we look forward to bringing our style of community banking
to Julington Creek."

    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 14
offices, including a growing presence in the Jacksonville metropolitan
area. Atlantic Coast Bank expects to open an additional branch in St.
Johns County, Florida, in the coming 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