In recent years, we realize the usefulness of feature extraction for optical correlator and hereby, we investigate the capability of Laplace operator in feature extraction of multiple targets. The first-order terms and the false alarm terms in the correlation output would be removed using electronic power spectrum subtraction technique. Most importantly, the entire magneto-optic SLM is completely utilized for displaying only targets in the input scene. A new cost efficient hardware implementation is proposed and aforementioned result of the proposed system is evaluated through computer simulation.