A search for the Standard Model Higgs boson in the two photon decay channel is reported, using 1.08 fb(-1) of proton-proton collision data at a centre-of-mass energy of 7 TeV recorded by the ATLAS detector. No significant excess is observed in the investigated mass range of 110-150 GeV. Upper limits on the cross-section,times branching ratio of between 2.0 and 5.8 times the Standard Model prediction are derived for this mass range. (C) 2011 CERN. Published by Elsevier B.V. All rights reserved.