We report what to our knowledge is a new technique for encoding both amplitude and phase information onto a single binary-valued spatial light modulator. In our approach, we spatially modulate the diffraction efficiency of the filter. Light that is not diffracted into the first order is sent into the zero order, effectively allowing amplitude modulation of either the first-order or zero-order diffracted light. This technique has applications in both optical pattern recognition and image processing. Experimental results are included.