A method of modulating a dynamic range of a plurality of picture elements each containing image information. The method comprises: (a) inputting the plurality of picture elements and extracting, from the image information of a picture element of the plurality of picture elements an intensity level being in a first dynamic range; and (b) for the picture element: (i) defining a surrounding region of picture elements and a remote region of picture elements; (ii) selecting at least one adaptation weight-function; and (iii) using the at least one adaptation weight-function and intensity levels of each picture element of the surrounding and the remote regions, for assigning a new intensity level to the picture element, the new intensity level being in a second dynamic range, thereby modulating the dynamic range of the plurality of picture elements.