The authors have evaluated a method of expanding the bit depth of image signals called SGRAD, which requires fewer calculations, while degrading the sharpness of images less. Where noise is superimposed on image signals, the conventional method for obtaining high bit depth sometimes incorrectly detects the contours of images, making it unable to sufficiently correct the gradation. Requiring many line memories is also an issue with the conventional method when applying the process to vertical gradation. As a solution to this particular issue, SGRAD improves the method of detecting contours with transiting gradation to effectively correct the gradation of image signals which noise is superimposed on. In addition, the use of a prediction algorithm for detecting gradation reduces the scale of the circuit with less correction of the vertical gradation.