Flooded Housing and Camera

If you flood your housing and camera immediately remove the batteries and memory card.

Do not attempt to re-use the camera if it contains water, especially seawater.
You can then decide whether or not to send the camera to Olympus for evaluation and repair.
Olympus America has a flat rate repair program that includes flooded cameras.
The following information is what I was able to determine from calling Olympus on Feb 3, 2004:
1. The flat rate varies with the camera model.
2. There is a six month warranty that excludes flooding if they repair the camera.
3. The camera owner pays the shipping to Olympus and Olympus pays the shipping back. The return shipping costs are included in the flat rate and are UPS Ground.
4. If the camera is deemed "beyond economic repair" by Olympus they offer a discounted trade-up policy or they will return the damaged camera to you. The trade-up policy is only on certain models and their respective availability.
5. An exchange for the same camera model is based on available inventory at the repair facility, not at Olympus in general.
6. The flat rate repair for the C4000Z is $145.00 at this time. 
7. A flooded C 3040Z, C4000Z or C4040Z deemed to be "beyond economic repair" is not replaceable with a refurbished one as they do not have that model. They offer an upgrade to a C5000 for $320. with an included 1-year warranty plus a free 2-year extended warranty. While this may be a good deal for some, it is not for those with a PT-010 housing as the camera does not fit. 
Some things to consider before sending the camera to Olympus:
1. Should you look for a re-furbished C3040Z, C4000Z or C4040Z (3040 and 4040 more difficult to find) on the web?  Olympus may not have them if yours is not repairable.
2. Will a camera that has been flooded with seawater continue to work properly, even after repair and beyond the repair warranty?
3. You are only out the postage one way if the camera is deemed "beyond economic repair".
The phone number is 1-800-622-6372, Extension 2701. As soon as the recorded greeting starts enter the extension. You may have to try a few times to get it to go through.
Olympus America
Consumer Product Group 
ATTN: Repair Department
10805 Holder Street
Suite 170
Cypress, CA 90630