Exhibit 99.1

Atlantic Coast Federal Corporation Announces Filing of Registration Statement


    WAYCROSS, Ga.--(BUSINESS WIRE)--June 29, 2007--Atlantic Coast
Federal Corporation (NASDAQ: ACFC), the holding company of Atlantic
Coast Bank, located in Waycross, Georgia, today announced that
Atlantic Coast Financial Corporation has filed a registration
statement with the Securities and Exchange Commission. Atlantic Coast
Financial Corporation is a Maryland holding company that has been
formed in connection with the previously announced mutual-to-stock
conversion of Atlantic Coast Federal, MHC.

    In connection with the conversion, Atlantic Coast Financial
Corporation expects to offer for sale between 12,750,000 and
17,250,000 shares of common stock (subject to a 15% increase to
19,837,500 shares) at a purchase price of $10.00 per share. The shares
to be offered for sale represent the 63.8% of the outstanding shares
of common stock of Atlantic Coast Federal Corporation currently owned
by Atlantic Coast Federal, MHC. In addition, at the conclusion of the
conversion, the existing shares of common stock held by the public
stockholders of Atlantic Coast Federal Corporation will be exchanged
for new shares of common stock of Atlantic Coast Financial Corporation
at an exchange ratio estimated to be between 1.46073 and 1.97628
(subject to a 15% increase to 2.27273).

    The expected number of shares to be sold in the offering and
issued to public stockholders as exchange shares is based on an
independent appraisal of the market value of Atlantic Coast Federal
Corporation. The offering and exchange ratio ranges may change as a
result of regulatory review or due to updates to the independent
appraisal, reflecting, among other things, changes in market
conditions before or during the offering. After the completion of the
conversion and offering, Atlantic Coast Financial Corporation will own
all of the outstanding common stock of Atlantic Coast Bank. As a
result, Atlantic Coast Federal, MHC and Atlantic Coast Federal
Corporation will cease to exist, and the common stock of Atlantic
Coast Financial Corporation will trade on the NASDAQ Global Market.
The conversion is subject to the approval of the Office of Thrift
Supervision and the required affirmative votes of members of Atlantic
Coast Federal, MHC (depositors of Atlantic Coast Bank) and
stockholders of Atlantic Coast Federal Corporation.

    Atlantic Coast Financial Corporation will offer shares of common
stock at a purchase price of $10.00 per share first in a subscription
offering. The subscription offering will have the following descending
order of purchase priority:

    (1) Depositors with accounts at Atlantic Coast Bank with aggregate
balances of at least $50.00 as of the close of business on March 31,
2006;

    (2) Atlantic Coast Bank's employee stock ownership plan;

    (3) Depositors with accounts at Atlantic Coast Bank with aggregate
balances of at least $50.00 as of the close of business on June 30,
2007; and

    (4) Depositors who had accounts at Atlantic Coast Bank as of the
close of business on the voting record date of the special meeting of
members of Atlantic Coast Federal, MHC.

    Shares of common stock not purchased in the subscription offering
may be offered for sale to the general public in a "community
offering," with a preference given first to natural persons residing
in the counties of Chatham, Coffee and Ware, Georgia and Clay,
Columbia, Duval, Nassau and St. Johns, Florida, and then to public
stockholders of Atlantic Coast Federal Corporation. Atlantic Coast
Financial Corporation may also offer shares not subscribed for in the
subscription or community offerings in a syndicated community offering
through a syndicate of selected dealers.

    Ryan Beck & Co., Inc. is serving as financial advisor to Atlantic
Coast Financial Corporation in connection with the transaction. Ryan
Beck will act as selling agent in connection with the offering on a
"best efforts" basis. In the event of a syndicated community offering,
Ryan Beck will serve as sole book running manger and FTN Midwest
Securities Corp. will serve as a co-manager. Luse Gorman Pomerenk &
Schick, P.C. is serving as counsel to Atlantic Coast Financial
Corporation and Thacher Proffitt and Wood, LLP is serving as counsel
to Ryan Beck.

    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. Atlantic
Coast Federal Corporation 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 $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 certain forward-looking statements.
These include, but are not limited to, statements regarding the
anticipated commencement date of the offering, the anticipated
exchange ratio and the anticipated size of the offering.
Forward-looking statements can be identified by the fact that they do
not relate strictly to historical or current facts. They often include
words like "believe," "expect," "anticipate," "estimate" and "intend"
or future or conditional verbs such as "will," "would," "should,"
"could" or "may." Certain factors that could cause actual results to
differ materially from expected results include delays in completing
the offering, changes in the interest rate environment, changes in
general economic conditions, legislative and regulatory changes that
adversely affect the business of Atlantic Coast Federal Corporation
and Atlantic Coast Bank, and changes in the securities markets.

    A registration statement relating to these securities has been
filed with the Securities and Exchange Commission but has not yet
become effective. These securities may not be sold nor may offers to
buy be accepted prior to the time the registration statement becomes
effective. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy shares of common stock nor shall
there be any sale of these securities in any state in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state. The
securities are not savings accounts or savings deposits, may lose
value and are not insured by the Federal Deposit Insurance Corporation
or any government agency.

    CONTACT: For Atlantic Coast Federal Corporation:
             Corporate Communications, Inc.
             Patrick J. Watson, 615-254-3376