A network camera comprising an image sensor, an image processing unit, a buffer memory and a network interface. The image processing unit is configured to divide the entire image readout by the image sensor into a plurality of overexposed regions and a plurality of non-overexposed regions, select a subset of the overexposed regions containing most oversaturated pixels, control said image sensor to readout only said selected subset of the overexposed regions with adjusted optical integration time, apply multiplicative scaling to readout pixels of said selected subset of the overexposed regions to generate scaled pixels, and replace pixels in the entire image corresponding to said selected subset of the overexposed regions with respective said scaled pixels to increase dynamic range of the entire image.
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