Group Contacts! by Qbix, Inc.

You've just found the best, simplest contact manager for your iPhone.
Don't take our word for it. See for yourself!

Group Contacts! lets you:

√ Group your contacts into Friends, Family, etc.
√ Easily create and manage groups of contacts
√ People can be in more than one group
√ Set an icon for each group - now w/more icons!
√ SMS or email a group of contacts easily
√ Attach images to your emails, use To | Cc | Bcc
√ Set reminders to get in touch with people
√ Search within groups, by any attribute
√ Works with native iPhone groups
√ Takes advantage of the latest iOS features
√ Supports both iPhone screen sizes

If you have iOS 6, definitely give our app the ability to access your contacts, or it obviously won't work.

Exchange users:

If you sync your contacts with Exchange, you won't be able to create new groups natively on the iPhone. Other group applications stop working at this point. We handle this by allowing you to create groups anyway, but they will only be accessible through our application. So even if you use Exchange to sync your contacts, you will be able to use this application.

√ Now you can add existing contacts to empty groups