Abstract: Segmentation of characters in a character set (10), made by placing a dark mark against a light background (12), is accomplished by establishing a vertical pixel projection for each pixel column in the image. The vertical pixel projections are filtered with a decay parameter so those pixel columns which contain only background have the highest projection. Thereafter, a set of "cut-points" (points of image segmentation) is obtained so that each cut-point coincides with a pixel column whose vertical pixel projection is both a local maxima and exceeds a predetermined threshold. The number of such cut-points is counted and if the number is not significantly greater than a predetermined number, the image is segmented along the cut-points. Otherwise, the vertical projections of those pixel columns coincident with the cut-points are filtered with a decreasing threshold to reduce the number of potential cut-points.