EXHIBIT 99.1

 Atlantic Coast Federal Temporarily Postpones Planned Stock Offering

    WAYCROSS, Ga.--(BUSINESS WIRE)--Aug. 13, 2007--Atlantic Coast
Federal Corporation (the "Company") (NASDAQ: ACFC), the holding
company of Atlantic Coast Bank, today announced that Atlantic Coast
Financial Corporation has temporarily postponed its planned stock
offering in response to current market conditions. Atlantic Coast
Financial Corporation is a Maryland holding company that has been
formed to become the new holding company of Atlantic Coast Bank in
connection with the previously announced mutual-to-stock conversion of
Atlantic Coast Federal, MHC, which currently owns approximately 64%,
of the outstanding shares of common stock of the Company. The Company
owns 100% of the issued and outstanding shares of the capital stock of
Atlantic Coast Bank.

    Robert J. Larison, Jr., President and Chief Executive Officer of
the Company, noted, "We believe it is advisable to delay the offering
until market conditions are more stable. We anticipate completing our
conversion to a full stock company in the fourth quarter of 2007 or
the first quarter of 2008."

    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 $898.4 million in assets
as of June 30, 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.

    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