A taxi driver taking four special needs pupils home died after a six vehicle pile-up.
The crash happened just hours after the children, who attend St Anne's, in Lewes, were told the school is to be shut down.
Six vehicles travelling in both directions along the A27 at Firle Straight between Lewes and Polegate were involved in the crash at 3.35pm yesterday .
The 44-year-old taxi driver from Eastbourne, who was behind the wheel of a Skoda Octavia, was airlifted to the Eastbourne District General Hospital by helicopter after firefighters battled to free him from his car. He died later despite an emergency operation.
Two of the children, a 14-year-old-boy who suffered a broken pelvis and a 14-year-old girl who sustained severe whiplash injuries, are still in hospital.
A 15-year-old girl is recovering at home with shock and severe cuts and bruises while a 13-year-old boy was back at school today.
The news came as a double shock to the school which had just learned it is to close in 2007 despite a long campaign to keep it open.
Headteacher Gill Ingold said: "Yesterday was the saddest day our school has ever known. We were still reeling from the news of our closure when we heard about the tragic accident involving our pupils.
"We are so thankful that they all survived. Our deepest sympathy goes out to the family of the taxi driver and his colleagues.
"We are going ahead with our sports day today and we hope that the children can put all the bad news behind them and enjoy their special day."
The stretch of road was the scene of another tragedy in December 1999, when Desmond Llewelyn, Q in the James Bond films, died following a collision.
The actor lived in Bexhill.
Firefighters from Uckfield with specialist rescue equipment joined crews from Newhaven and Lewes to ensure the vehicles did not catch fire.
Six ambulances were called from Lewes, Uckfield, Hailsham and Eastbourne.
Drivers faced a nightmare journey home as the road was closed for seven hours and jams stretched for miles at the height of rush hour.
A spokesman for Sussex Police said: "This was a multiple vehicle collision which resulted in the tragic death of a 44-year-old man and injuries to several other people.
"We are asking anyone who saw the collision to contact us and help us with our inquiries into this sad incident."
A 24-year-old Hove man, driving a Rover 200, escaped injury and a 27-year-old lorry driver from Bradford was slightly hurt.
A 35-year-old woman from Eastbourne, driving a Ford Fiesta, was uninjured as were a 48-year-old van driver from Polegate and the driver of a Peugeot 306 from Hove.
Anyone who witnessed the smash is asked to contact Sergeant Kevin Donovan at the Road Policing Department at Bexhill on 0845 6070999.
A 24-year-old man from Hove was arrested last night on suspicion of causing death by dangerous driving. He was released on bail while police continue their investigations.
The coroner's office has been informed about the death.
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