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The City Technology College, which opened in 1988, now has more than 1,500 students aged between 11 and 19.
Mr Pearson, who went to Kingshurst City Technology College and then to Coventry University, said: "We had the idea for tackling the problem from reading newspaper articles.
The politician last visited the school back in 1988, when it became the first city technology college in Britain.
His solicitor, Jonathan Coad, told Mr Justice Tugendhat that in 1987 Sir Peter set up the Vardy Foundation to assist in the education of young people in the most deprived parts of the UK through sponsorship of the City Technology College initiative.
In his case, he said it only began to be narrowed in Gateshead when the Thatcher Government established a city technology college when just 10% of local pupils stayed on.
Woodlands School were not so fortunate, going down 3-1 to Kingshurst City Technology College in the fifth round of the ESFA Under 18s Individual schools Cup.
The regional winners in 2003 included South Yorkshire Further Education Consortium, Dixons City Technology College in Bradford and Escrick Park Estate in York.
At Dixons City Technology College in the city, 60pc of pupils were white and 40pc Asian, the latter a mix of Hindus, Sikhs and Muslims who had told him on a recent visit none of them wanted to be in separate schools, he added.
The school, the Harris City Technology College, now has some of the best GCSE results in the country - and was named as England's most improved school two years ago.
BRIGHT sparks at a city technology college were celebrating after months of hard work paid off.
Sir Peter, who ran the Reg Vardy car dealer group, became involved in education when, in the late 80s, the Conservative Government invited him to build a City Technology College and he opened Emmanuel College in 1990.