Claudiu on SharePoint

Scenario: 
You have two SharePoint user groups with "similar" names, created in this order:
    CA news administrators
    US news administrators

You can only set the target audience to the first created group (CA news administrators in this case)
When you try to set the target audience to the second (or third and so on) group you get this message:

No exact match was found. Click the item(s) that did not resolve for more options.




Fix:
Rename the the user groups so the names are less "similar":
    Canada news administrators
    United States news administrators

I am not sure how SharePoint figures out the similarity between the group names but the above fix worked in my case.

Bug:
This is a bug in SharePoint 2010 SP1.