First of all, it appears that email and contacts are NOT synced with regards
to categories.

When I receive an email from someone who is in my contact manager and who is
already assigned to a category, I still need to assign a category to the
email. I wanted to create a custom search for everyone within a specific
category, rather than creating a seperate mail rule each time.

Is it possible to auto-assign a contact to a distribution list based on
categories?

Thank you.

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Scott