Adding external email addresses to distribution group

I have a distribution group in Exchange 2007 and need to add an outside email address to this group however when I click on "add" it will only show Active Directory users. Am I able to do this? Does a Dynamic Distribution group allow this? Is this recommended?
Who is Participating?
You have to add the external email address as a mail contact and then add them in distribution group.
On the mailboxes tab where all your mailboxes are displayed, on the right pane there is a link for new mail contatct

in EMC -> recipient config -> Mail Contact

create a new mail contact and assign to it the external email address needed

add this mail contact to the distribution group
fstincAuthor Commented:
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