SMTP Issue

Guys,
Suite 7.2
Any known issues trying to connect to Exchange 2014 on local network for SuiteCRM SMTP?
Error = SMTP server error 5.5.2 Send hello first

The internet leads us to believe something is wrong with the PHP Mailer?
PHP 5.4.4 Apache 2.4.2 MySQL 5.0.10
Any resolve
Thanks
Joe