We present details of an optical processor which carries out the dual
operation of character recognition and novelty filtering. Dynamic Fres
nel holographic filters are written in photorefractive Bi12SiO20 at 51
4 nm and read out using spatially incoherent illumination at 633 nm. T
ransient enhancement of the readout beam is achieved by uniform illumi
nation of the crystal, using a white-light source. Digital thresholdin
g is then used to completely suppress the static background to provide
ideal novelty filter characteristics.