We are running Exchange 2007 I need to exclude distribution groups in our sub domain from the GAL without hiding them. I have a Recipient Filter that updates that successfully only it fails to exclude the groups.

{(Alias -ne $null -and (RecipientContainer -ne 'OU=SDG,DC=subdomain,DC=ad,DC=domain,DC=tld' -and (ObjectClass -eq 'user' -or ObjectClass -eq 'msExchSystemMailbox' -or ObjectClass -eq 'msExchDynamicDistributionList' -or ObjectClass -eq 'group')))}

You have posted in an Exchange 2013 forum.  The Exchange previous versions forums are here:  http://social.technet.microsoft.com/Forums/en-US/category/exchangeserverlegacy

Well, of course nobody can tell you whether your query is valid since we don't have access to your AD.  I can only offer you the general advice to try -notlike and -like instead of -ne an