The BlackBerry handheld should only synchronize and update with the Exchange-side Contacts. This was by design. I would imagine this is more of an Outlook configuration issue rather than the BlackBerry. How about just changing it to use the server-side Contacts rather than the Outlook Address Book (which, if I'm not mistaken, is localized)? The Address Book in Outlook has been deprecated and the Contacts have long since taken its place as the default contacts manager.
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