I also, sadly, had this problem too. Or else why would I be blogging on this site,... lol, JK
The only fast, but not so easy way I figured out how to fix this was to add the right kind of area code for each phone number in your contacts. (I felt the computer was easiest, unless you don't sync your iPhone with your computer)
Strangely enough, I didn't us a PC to do this. I used Address Book on my iMac to sync my contacts to my phone through iTunes. There are some settings that will put your contacts in (AREA) ###-### format in Address Book. Though, the will not fix the existing ones... 😟
So, just add those area codes in the begging of ur numbers, though NOT IN SMS itself, or else it would make it 2 numbers because of the new multi-text iPhone SMS has. No need to delete all contacts (though, it would help u go through all those people who u don't talk to any more... lol, JK) Oh, and yes, did work with replying to text (for any separate person who came for help)
P.S. Did restore my phone though, which may, for some reason, have caused INTERNATIONAL ASSIST to fail, even though I have it ON! Unless it doesn't matter?!?