SMS does not show contact name

Hi,
I have an iPhone 4. I recently switched to using exchange as my contact list so I can have all my contacts (business and private) at the same place.
My problem is that the contact names do not always show up on text messages. A few contacts work but there is no visible difference in the ones that work and those that don't. Also I have added the country code to the phone number and that does not solve the problem either. I have tried deleting the contacts and recreating them. I have tried to delete all the history of a given number and start the sms conversation again picking the name from the adress book - right after the message was sent it switched the name to the number.
Also I have tried restarting the phone and resynced it to iTunes.
Can anyone help me? This is really not possible to live with.

1) Open the Phone and dial *228. This is a Verizon over-the-air programming number.
2) When the system answer press 1 for "Program or activate your phone"
3) Wait for the call to disconnect. You should get a prompt stating something like, "Settings updated."
4) Open the Task Manager and kill the Phone, Message, and Contacts Applications
5) Wait a few minutes (I waited 3 just to be extra safe)
6) Open the Message App to verify the fix

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