Exhibit 99.1

           Atlantic Coast Federal Corporation to Align Its
                    Banking Operations by Market;
                    Makes Management Appointments

    WAYCROSS, Ga.--(BUSINESS WIRE)--Dec. 6, 2006--Robert J. Larison,
President and Chief Executive Officer of Atlantic Coast Federal
Corporation (NASDAQ:ACFC), the holding company for Atlantic Coast
Bank, today announced that the Bank will organize its operations into
state markets to enhance its focus on the two key regions it serves.

    The Bank's five branch locations in Waycross, Douglas and Garden
City (suburban Savannah) will now be organized as the Georgia market.
Tricia H. Echols, currently Vice President of Central Lending, has
been named Market President for Georgia. Similarly, the Bank's seven
branches in the metropolitan Jacksonville area and one in Lake City
will comprise the Florida market going forward, to be headed by Market
President Carl W. Insel. Insel was formerly Executive Vice President
of the Bank.

    In connection with this new organization structure, the Bank also
has created the new position of Chief Operating Officer and has named
Thomas B. Wagers to this post. Wagers is currently Vice President of
Finance for the Bank.

    Commenting on the announcements, Larison said, "As we continue to
develop a roadmap for continued growth, involving new marketing and
service initiatives, we recognize that our organizational structure
also must change to support this and better enable our Bank to
capitalize on the opportunities ahead. By implementing a
market-focused management team, we can tailor our efforts to these
very different regions. Likewise, by separating some of the
administrative and operational functions from the retail side of the
Bank, resting those responsibilities under our new Chief Operating
Officer, we can enhance the service and support we provide to our
bankers and lenders - and ultimately our customers.

    "It is gratifying that our Bank's expansion has provided these new
opportunities in our management team for individual growth and
development," Larison continued. "I am pleased to recognize the hard
work and reward the commitment of Tricia, Carl and Tom. Their records
of accomplishment reflect the strong, positive leadership that will
continue to bolster Atlantic Coast's growth and profitability."

    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 $793 million in assets as
of September 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