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The performance of digital communication systems over generalized-K (KG) fading channels is analyzed and evaluated. Novel closed form expressions for the SNR statistics, the average Shannon's channel capacity and the bit error rate (BER) are derived. These expressions are used to study important performance criteria such as the outage performance, the average capacity and the BER for a great variety of modulation formats in KG fading channels. The proposed mathematical analysis is accompanied with various performance evaluation results, which demonstrate the usefulness of the proposed approach.