Exhibit 99.1


          Atlantic Coast Federal Corporation Terminates Its
                 Second-Step Conversion and Offering


    WAYCROSS, Ga.--(BUSINESS WIRE)--Dec. 12, 2007--Atlantic Coast
Federal Corporation (NASDAQ:ACFC), the holding company for Atlantic
Coast Bank, today announced the termination of its second-step
conversion and offering. The Company had previously extended the
community offering to December 28, 2007. Subscriptions received to
date are not sufficient to reach the minimum of the offering range and
will be returned with interest, as provided in the prospectus dated
October 12, 2007, to the subscribers of Atlantic Coast Financial
Corporation common stock. As a result of the termination of its
second-step conversion and offering, Atlantic Coast Federal
Corporation currently estimates that it will expense approximately
$1.1 million, net of tax, in offering expenses in the fourth quarter
of 2007.

    Robert J. Larison, Jr., President and Chief Executive Officer of
Atlantic Coast Federal Corporation, said, "Market conditions for bank
and thrift stocks, especially in the Florida market, have changed
significantly since we began the stock offering process seven months
ago. The ongoing problems in the residential mortgage lending market
continue to depress the securities market for most financial
institutions. Taking into consideration many factors, including the
impact of the stock offering on our minority stockholders, the Board
of Directors has determined not to conduct a stock offering at this
time. We believe that it is in the best interests of the stockholders
of Atlantic Coast Federal Corporation and the members of Atlantic
Coast Federal, MHC (the depositors of Atlantic Coast Bank) to
terminate this stock offering until market conditions for second step
conversions improve."

    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 Federal Corporation, the holding company for
Atlantic Coast Bank had approximately $915.7 million in assets as of
September 30, 2007. Atlantic Coast Bank 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 size and timing 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.


    CONTACT: Corporate Communications, Inc.
             Patrick J. Watson, 615-254-3376