To backup contacts, go to contacts, go to contacts, press menu button - more - Import/Export. There you have the option to import or export contacts from or to SIM card or SD card. I recommend backing up to SD card. All the contacts will be saved as a .vcf file if you choose SD card. To restore contacts, come back to menu or in the case of SD card backup, just open the .vcf file.
I dont know how many times I've posted this, so please, next time, before starting a new thread, SEARCH!