Add group - to add a new contacts group press Add button. As soon as you add new group it will be available from "Select group" drop-down list.
To add group :

Edit group - select group to be edited and press Edit button. You can edit all group besides: "All Groups" and "Deleted items".
To edit group :
Delete group - select group to be deleted and press Delete button. You will be asked for confirmation. This is done to prevent accidental group deletion. You can delete all group besides: "All Groups" and "Deleted items".
Related pages