IOS contact lists revert to all when one contact is deleted

Running iOS 7.0.3 on mini. I have multiply contact lists as a result of syncing with our Exchange 2010 sp3 server. Was attempting to delete old contacts and each time I do all of my contact lists, including "suggested contacts" enable themselves. To be clear if I click on "groups" and then enable only one list to display, if I delete one contact from that list, iOS then enables all the lists and fills the contacts view with lots of extra addresses. I had this issue on 7.02 and 7.03. What is more odd is this does not happen on my 5S running 7.02.  Both devices use same iCloud and Exchange accounts.

Check Settings>General>Date & Time>Set Automatically>On. Make sure that the time zone setting is also set correctly.
If that wasn't the problem, restart your iPad and try again. If that fails, reset your iPad and try again. Quit iTunes and restart your computer as well. Turn off your firewall and antivirus software when you attempt the update again.
Restart the iPad by holding down on the sleep button until the red slider appears and then slide to shut off. To power up hold the sleep button until the Apple logo appears and let go of the button.
Reset the iPad by holding down on the sleep and home buttons at the same time for about 10-15 seconds until the Apple Logo appears - ignore the red slider if it appears on the screen - let go of the buttons. Let the iPad start up.

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