I have got as far as selecting the ringtone I want under contacts but when I press Add, its asking me to sign in to Microsoft Exchange and I can't get any further if I don't have a microsoft email.
Welcome to Android Central! Can you tell us the exact steps you're doing? In general, you have to open Contacts, select the contact, then tap Menu>Select Ringtone. Where do you see the Add button? Is it on the same screen as the ringtones to select?