response to a binary signal is inherently linear and no improvement is possible with predistortion. In display holography, non-linearity does not play an important role. The harmonic terms are diffracted at broad angles and do not significantly affect image quality. In fact, because of increased efficiency, most display holograms are purposefully saturated. In a hologram for use as a matched filter, the linearity is very important. The harmonic terms contribute to noise and loss of efficiency. Even though some efficiency is gained by driving the film into saturation, light is diffracted to higher orders and this light is lost to the system. In an optical correlator with limited light budget, this loss may be intolerable. Such a system is the prime candidate for the advantages offered by the CGH utilizing computer linearization. Computer linearization is a vital step in optimizing the continuous- tone CGH matched filter.