Set all new contacts to certain category

We have a bunch of Android phones. The Ice Cream Sandwich update removed the ability to not show Suggested Contacts from Outlook. However, if we put all the suggested contacts into a certain category, we can deselect them. 

For example, if I set all my suggested contacts to Blue Category, then I can deselect them from showing on the phone.

So, I want to figure out how to automatically set all contacts in the Suggested Contacts folder to a certain group. We have Exchange 2007 and Outlook 2010. I would be happy for a solution on either end.

Thanks!