In this paper, a conventional simulated annealing (SA) method for optimization of a kinoform computer generated hologram (CGH) is analyzed and the SA method is modified to reduce a reconstruction error rate (ER) of the CGH. The dependences of the quantization level of the hologram pattern and the size of the data on the ER are analyzed. To overcome saturation of the ER, the conventional SA method is modified as it magnifies a Fourier-transformed pattern in the intermediate step. The proposed method can achieve a small ER less than 1%, which is impossible in the conventional SA method.