Help with contact management and bulk mailing

Hello friends, I have an old version of Office Suite (2002 actually) and I
need to be able to manage less thant 1000 names/addresses/e-mails.  I need to
input all of the contacts and be able to seperate them into catagories for
mailing and e-mailing.  There are currelntly 5 different catagories
(currently advertisers, subscribers, distributors, vendors and writers) with
the possibility of 1 or 2 catagories being added later (potential advertisers
or potential vendors, etc.).  I am trying to find out which office suite
program would be able to manage this easiest and allow me to be able to print
out mailing labels and create mass e-mailings.  I do not want to buy a new
program if at all possible.  Also I am using quick books for my accounting
program and would also like to know if I can export the in contacts from
quickbooks into any contact management program?  Please feel free to respond
directly to my e-mail at michelle@petfoliomagazine.com.
Any information would be helpful!
Thanks