1. Open active directory users and computers
2. Navigate to the Organisational Unit (folder) in which you want to create the distribution group
3. Right click on the Organisational Unit
4. Choose New -> Group from the context menu
5. Fill in the name for the group, this name will appear in the outlook email address list which has a small window on most versions of outlook so make sure the name is identifiable from the first few characters
6. Select “Distribution” under “Group Type”
7. Click “Next”
8. Make sure “Create an Exchange e-mail address” is ticked
9. Click “Next” and Finish

The group will have an external address of ‘group name’@'your primary email domain’, to add an additional address:

1. Open the group properties by double clicking on it in active directory users and computers
2. Go to the “E-mail Addresses” tab
3. Choose “New”
4. Choose “SMTP Address”
5. Enter the email address, this address must be valid for you exchange organisation ie the domain section of the address must be present within one of the recipient policies for your organisation
6. Click “OK” and “Apply” or “OK” to save the changes

Don’t forget to add some users to the group!