After saving Contact items in a Contacts folder, you can use those items to create an e-mail distribution list. After you've created a distribution list, you can use that list as an address for e-mail messages to send a message to everyone on the list.
Note
This is a new capability in Outlook 2000 that works the same way for C/W and IMO. In Outlook 97 and in C/W Outlook 98, you had to use a Personal Address Book if you wanted to create a distribution list. IMO Outlook 98 had a different way of creating distribution lists.