Open the DL, click File>Save As, and select "Text Only" in the "Save as type".
This will produce a Tab-Separated values file which Excel can handle. You'll
have to remove the first few lines if you want the header labels to be the
first row.
Wrong. Thats how you export a contacts folder.
Contacts folder = folder of contact items
Distribution list = a list of contact formed of a portion the contacts in a contacts folder