PyPi is now showing matplotlib at 1.1.0 so this issue is resolved. Install matplotlib via:
pip install matplotlib
This happens because the download link for matplotlib 1.0 on PyPI points to a URL that doesn't appear to pip to be a file in a known format (the URL ends with /download rather than a filename). See this bug filed on pip.
oyvindio's workaround is the best option I'm aware of for now, until either pip gets more flexible about URLs or matplotlib fixes their PyPI link.