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It sounds like you have iCloud turned on in the settings of both devices but the contacts wont sync.
Thats a bit frustrating, but I have some troubleshooting to recommend from this article:
iCloud: Troubleshooting iCloud Contacts
- Make sure there are no current issues listed in the System Status affecting iCloud Contacts. The System Status is listed at the iCloud Support webpage.
- Make sure the issue you are seeing is not specifically covered in iCloud Help already. To search iCloud Help, visit help.apple.com/icloud.
- Check your settings and preferences as something may not be set up correctly. For example, having incorrect date and time settings can cause issues which are easily resolved by entering the appropriate settings.
As well as these 2 sections from a bit further down in the article.
Troubleshooting iCloud Contacts update or setup issues with Contacts on OS X Mountain Lion (or Address Book on OS X Lion)
Troubleshooting iCloud Contacts update or setup issues with iOS devices