Contacts are part of the backup. So back up the old phone to your computer using iTunes and restore the new iPhone from that backup.
Also have a look at this article: iPhone: Transferring information from your current iPhone to a new iPhone
Thank's a lot for your response. When it comes to contacts vanishing from my
phone, I do as you suggest, i.e I sync my phone to Itunes. But I have a
feeling there is a setting somewhere which makes sure that
the most recent/latest information - whether in Itunes or in the phone -
is always being saved. But where is that setting - or does it not exist?
Every sync you do makes sure, that the contact info on the phone and the supported program on your PC is the same.
These settings are part of the info pane when your phone is connected to iTunes.
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