Matteson made eight birdies in a bogey-free 8-under 63 for a one-stroke lead over fellow Americans Jeff Overton, Brian Harman and Robert Garrigus.
Woods was 2 under early, but slipped to even par after nine holes after par putts lipped out on the eighth and ninth.
The 14-time major winner started his comeback with a birdie putt over an incline from 20 feet on the 10th, the first of his five birdies on the back nine as he finished with a 66 on the 6,197-yard Mines Resort and Golf Club course.
With the temperature hitting 93 degrees and high humidity, Woods appeared frustrated at times as he narrowly missed putts for birdies — including one from 10 feet on the 18th as storm clouds swirled overhead — on top of the two short putts he missed for par. But he didn't blame the conditions.
"What is frustrating is turning at even par and I'm eight back," he said. "I feel like I just got run over there. Wind is picking up a bit and it's going to get more difficult.
"Three or four under par was my number on the back nine — if I could shoot that, I'm still right in the ballgame. I happened to get one more, which was a bonus."
Woods knew he could have shot a score that would have put him higher than tied for seventh, but he was generally happy with his game.
"I really started hitting the ball quite well at the end of the front nine. I happened to miss two short putts," he said. "Realistically it could have been seven or eight (under). But even at the turn, and still post five (under), it was a nice little comeback.
"It's going to take 20-plus this week to win the tournament, so I've got to be aggressive and we've got to go get it."
Matteson had birdies on Nos. 2, 3, 6 and 11 and finished with four straight, closing his round by holing his third shot from the greenside bunker on the par-4 18th.
"The pin is really tricky on 18. I knew I'd be doing good if I could leave myself seven or eight feet for par, and it bounced and slam-dunked in the hole," Matteson said. "That's the first time all year the ball has managed to hit the pin and stay in the hole."
Matteson placed second at the John Deere Classic in July and had three top-10 finishes on the PGA Tour in 2012 but is yet to win a title. The co-sanctioned $6.1 million CIMB Classic doesn't count for points on the tour this year, but will be added to the schedule in 2013, making it a good title to win.
Defending CIMB champion Bo Van Pelt, 1 under after an opening 70, was coming off a win last week at the Perth International, which was jointly sanctioned by the European and Australasian tours. Jason Dufner, who was second to Van Pelt last week, was 3 under and in a share of 16th.