Exhibit 99.1

             Atlantic Coast Federal Corporation Increases
             Quarterly Dividend to $0.14 Per Common Share

    WAYCROSS, Ga.--(BUSINESS WIRE)--June 29, 2007--Atlantic Coast
Federal Corporation (NASDAQ: ACFC), the holding company for Atlantic
Coast Bank, today announced that its Board of Directors has voted to
increase the Company's regular quarterly cash dividend rate on common
stock to $0.14 per share. This new rate represents a $0.01 increase
from the preceding quarter and goes into effect with the next dividend
that will be paid on July 30, 2007, to all stockholders of record as
of July 13, 2007.

    Atlantic Coast Federal, MHC, which holds 8,728,500 shares or
approximately 64% of the Company's total outstanding stock, will waive
receipt of the dividend on its shares.

    Commenting on the announcement, Robert J. Larison, Jr., President
and Chief Executive Officer, said, "We are pleased to be in a position
to raise our cash payout to stockholders, continuing with our efforts
to enhance long-term shareholder value. The Board's action to increase
the cash dividend marks the ninth consecutive quarterly increase in
our dividend rate since we commenced these payments in early 2005."

    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. On May 7, 2007, the Company announced its intention to convert
from the mutual holding company form of ownership to the full stock
form of ownership. 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 $886 million in assets as
of March 31, 2007, is a community-oriented financial institution. It
serves southeastern Georgia and northeastern Florida through 14
offices, including a focus on 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
"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