A new procedure for identification of the hard exudates is described in this Paper. Images are sorted into as many as 15 types using the maximum value of the hue in an image. Hue (h) at a point is defined as the ratio of green (g) to red (r) intensities. Given an image, the type-number is assigned to it. The exudates are also identified by using the hue, h. The varying intensities have been taken care of by the linear fit obeyed by the plot: h = m*g+c. A modified hue variable ‘Bh’ is used to eliminate the soft exudates which have a blue component, by fitting lines like Bh=w1*h+w2. Very low intensity yellow coloured patches which do not qualify as hard exudates are removed by a discriminating threshold ‘de’. The parameters like (m, c), (w1,w2), de are listed for the 15 types, in a Look up Table derived from experiments. The table entries vary in a structured manner. The tables can further be simplified as expressions if desired.