ICS Feed from Exchange to ipad not displaying correctly

Users are connecting their ipads to exchange 2010 shared calendars via an ics feed. Day & week views of calendar items appear to be correct. However, events that, in exchange are marked as "all Day", don't show up as all day events on the ipad, it just blocks out time for the event from 12 am to 12 am.
When the user views the calendar in month view. Calendar items that should be all day events are overlapping to look like 2 all day events. I created another new ics calendar in gmail and connected to that ics calendar on the ipad, and it displayed all day events perfect in day, week and month views. However, if I created a calendar event that was from 12 AM to 12 AM, it displayed the event over 2 days in month view.
I have also subscribed the exchange ics calendar to my gmail account and gmail displays the ics feed correctly. Same with subscribing to the calendar in Hotmail, Yahoo, and the Calendar app on my mac. So far, the only device that seems to have issues reading these ics calendars correctly in month view is the ipad.
I've tested with the ipad 3 as well as an ipad 1. The ipad 1 displays events ok, but they don't display all day events like I would expect. They just have a bullet event as a shorter event shows up. So the all day event doesn't appear spanning from the left to right of the calendar day. The ipad 3 is showing the full day events, they just bleed into the next day on month view. I've updated to the 6.1.2 ios, but the problem persists.

As a follow-up, this issue is happening on any calendar I've tried, ics or locally on the ipad. If I create an event that goes from 12AM to 12AM, the month view shows the event as a 2 day event. Any other calendar viewier I've tried, including the calendar viewer on my Mac shows these events just fine.
Again, the ipad shows these events correctly on the Day/Week, but not month.
So I'm caught in a vicious circle. Ipad displays correctly if an event is marked as an All Day event, Ipad displays correctly as 12AM to 12AM, Microsoft Exchange ICS feed displays all day events as 12am to 12am. So I can blame it on MS, but I can't blame MS if every other calendar program displays it correctly. In the end, I think the Ipad has the problem based on the many other calendar programs showing the same events correctly.

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